1.1a Dynamic Nature Of A Business Flashcards
State three ways why new business ideas come out
- advances in technology
- changes in what consumer wants ( changing consumer trend )
- products and services becoming obsolete
What is the difference between E-commerce and M-commerce ?
E-commerce : uses the internet to carry out business transactions
M-commerce : using mobile technologies to carry out business transactions
What is the benefit for a business when using e-commerce ?
- a small business can be able to trade with customers all over the world
- payment systems such as PayPal allow a business to take online payment without having to creating payment platforms
- can also trade to big companies such as amazon/eBay
- don’t have to rent physical premises before they begin trading
Benefits of using social media to promote a business
- cheaper alternative compared to billboards and tv advertisements
- can interact with lots of existing and potential customers ( can get feedback ) it’s very popular
- reduce the work involved in marketing
- benefits small business who don’t have dedicated marketing staff
How can a business keep up with changing trends and identify customer wants and needs ?
- business can ask customers to fill out feedback questionnaires
- engage with customers through social media
- use online review services ( eg. Reevo )
- trialling new products
- use data and analyse to see previous purchases , also helps them to decide which target market to aim at
What is the disadvantage of adapting a product ?
- they will not always succeed
- business have to balance customer and market needs with the cost of development
What is meant by the term ‘ adaptation ‘ ?
Process of modifying an existing product or service so that it is suitable for different customers or markets
What are the advantages of adapting a product ?
- can be worthwhile
- can cut development costs
- quicker to launch product
