1.1.1 The Dynamic of Business Flashcards
What is a product?
A product is anything that is
capable of satisfying
customer needs
What is a service?
A service is an act that a
business person carries
out for you in exchange
for money.
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,
Esty 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.
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.
Definition: Obsolete
Obsolete means a product that is no longer used or
out of date
For example we can make a product obsolete by
replacing it with something better
Obsolete services
Some services are no
longer required because
of changes in
technology or new
inventions
Definition: Original ideas
Original ideas are ones that have not been used before to
put a product or service into production e.g. pet hotels
Original ideas – solve problems
This is Art Fry – he
invented the post-it
note by accident
Original ideas – gap in the
market
A successful business will be one
that spots an opportunity to
make a profit
