1.1.1 the market Flashcards
characteristics of mass markets
-products are less unique
-lower average costs
-economies of scale can be achieved
-lower profit margins
characteristics of niche markets
-products are more specialised
-higher average costs
-don’t benefit from economies of scale
-higher profit margins
what’s a dynamic market
market that’s constantly changing
4 areas to consider when examining a dynamic market
1) online retailing
2) how markets change
3) innovation and market growth
4) adapting to change
what is risk ?
the potential threat to a business success
what is uncertainty
when outcomes are difficult to predict
example of risks
technical failures
cyber security threats
currency fluctuations
examples of uncertainty
will the economy go into recession ?
what will happen to interest rates ?
what is market share
the percentage of total sales within a market that a company or product holds
define differentiation
the process of distinguishing a product or service from competitors in ways that create unique value for customers.
benefits of adapting to market change
staying competitive
meeting evolving customer needs
seizing new opportunities
improving business resilience
maintaining relevance in dynamic industries.
drawbacks of not adapting to market change
loss of market share
reduced competitiveness
missed growth opportunities
how to calculate market share
(businesses sales revenue / total markets sales revenue) x 100
