Dynamic Nature of a Buisness

Question 1

Why might an entrepreneur start a business?

Answer 1

An entrepreneur might notice a gap in the market and create a business enterprise because there is a demand for the product of service they can provide

Question 2

Dynamic market -

Answer 2

A dynamic market is a rapidly changing business environment which constantly has to keep on top of new trends to appeal to their target audience

Question 3

How do business ideas come about ?

Answer 3

• changes in customer want
• products and services becoming obsolete
• new and original ideas
• adapting existing products ,services and ideas
• changes in technology

Question 4

E-commerce :

Answer 4

Any business transaction that takes place using the internet
Example -businesses selling to consumers (B2C)

Question 5

Why is a E-commerce a positive advancement in technology for businesses?

Answer 5

It has allowed businesses to sell to different countries reaching customers on a wider scale making more profit and appealing to a larger target audience

Question 6

M-commerce :

Answer 6

Any business transaction that takes place through mobile devices such as a phone or tablet

Question 7

How is technology like m-commerce progressing ?

Answer 7

To increase the use of m-commerce we are seeing and increase of mobile apps being created to sell goods and services .Apple pay is an example of m-commerce

Question 8

Social media promotion

Answer 8

Social media platforms allow businesses and customers to interact,the can get feedback on their service/product creating brand awareness through advertising campaigns.

Question 9

Advertising

Answer 9

Businesses can also pay celebrities and influencers to promote their brand by sharing photos of them accessing and actively using your product and is often cheaper than traditional advertising whilst allowing them to reach their target audience more easily

Question 10

New technology

Answer 10

examples of new original technology is 3D printing and navigation systems

Question 11

Changes in consumer want

Answer 11

Consumer taste change often meaning entrepreneurs have to keep up with these tastes whether it be new trends or technology making new gaps in market to accommodate these new tastes

Question 12

Demographics -

Answer 12

Demographics are the different characteristics that make up a population , business of customer base .These could be age , nationality, gender and disability.Businesses use demographics to decide on a target market

Question 13

Obsolete -

Answer 13

Means ‘out of date ‘ because new products replace them eg :DVDs to netflix and online streaming services

Question 14

Product life cycle

Answer 14

Most products have a limited life span meaning at some point they will no longer be available to buy this is know as the product life cycle .As a product sells overtime those sales will slowly start to decline until it is replaced by an updated version

Question 15

Original ideas

Answer 15

It can be challenging for entrepreneurs to come up with original creative ideas but also be insightful of customer want .eg -trunki suitcases which now many companies try to copy

Question 16

Invention

Answer 16

Means creating something that hasn’t previously existed

Question 17

Innovation

Answer 17

This is the successful commercialisation of an invention or adaption of a product over time to improve Its features .Innovation could improve the likelihood of a business succeeding .

Question 18

Adaption

Answer 18

Is the process of changing an existing product of service so it’s suitable for different customers eg when a restaurant expands its menu providing a wider range of food to appeal to more people’s tastes

Question 19

Rebranding

Answer 19

Changing a products brand name , Logo or packaging might boost sales profiting from the new market

Question 20

Marketing strategies

Answer 20

Change your marketing strategies used for promoting and advertising your business could be achieved through adapting to special offers and social media platforms