1.1.1 The dynamic nature of business Flashcards
What is a product?
A product is anything that is
capable of satisfying
customer needs
Physical products:
Cars
Washing machines
X box consoles
Mobile phones
What is a service?
A service is an act that a
business person carries
out for you in exchange
for money, for example:
1. Dental treatment
2.Accountancy
3.Travel agents
4.Gardening
5.Cleaning
6.Hairdresser
Changes in technology: Amazon
Since the invention of the
Internet in 1990 businesses
have found a new cheaper
way to reach the consumer,
by selling online
This is called e-commerce
Changes in technology: eBay
Small businesses are now
able to set up and sell
virtually anything online due
to websites such as eBay,
etsy and ebid
Changes in technology: Stadia
New technology innovation
means there are lots of new
products on the gaming
market
Changes in technology: robotics
Advancements in robotics will mean dozens of new
products in the future. Can you think of any task in
your day that could be completed by a robot?
Wants and needs: Social media
Businesses can use social media to find out what consumers
want and need so that they can produce products and
services to meet those wants and needs
Wants and needs: ready meals
We are all working more and have less time, so the
ready meal market is catering to these consumer
needs
Wants and needs: “Free from”
foods
Consumers are also
demanding organic, free
range, sustainable, eco
friendly products as we
become more aware of our
impact on the environment
Change in tastes and trends
Consumer tastes change over time which
means that a business is at risk if they don’t
keep up with current trends.
Obsolete services
Some services are no
longer required because
of changes in
technology or new
inventions
Original ideas
Original ideas are ones that have not been used before to
put a product or service into production e.g. pet hotels
This may be to solve problems
It may be because an entrepreneur has a passion or interest
A gap in the market may have been spotted
A business may have carried out some research into the
wants and needs of shoppers and be creating products to
meet those needs
Original ideas – solve problems
This is Art Fry – he
invented the post-it
note by accident
Originally it was called
the press and peel
It was yellow as he had
yellow paper to hand
He invented it to keep
the page open in his
hymn book
Original ideas – gap in the
market
A successful business will be one
that spots an opportunity to
make a profit
This could be an idea that
no-one has thought of before –
for example Trunki luggage
The opportunity could be where
there are lots of businesses
already making a healthy profit
The entrepreneur may also spot
an opportunity to trade and also
make a difference to society –
this is called a social enterprise
Original ideas – carried out
research
Vet Joe Inglis and 7 friends realised
that there were 8.5 million dogs in the
UK and 4 out of 5 owners treat the pet
as one of the family and want the best
food possible
They created a niche business which
makes tailored food to the dog’s age,
breed or medical condition and is
delivered to their door
Now TAILS.COM have 40,000 UK
customers
