Topic 1.1.1 Dynamic nature of business

Question 1

Why do products and services become obsolete?

Answer 1

Changes in customer needs and changes in the trends of the market,advancements in technology

Question 2

Why do new business ideas come about?

Answer 2

Changes in technology.This provides more business opportunities,Social media-allows businesses to interact with customers.
Changes in what consumers want-Businesses need to keep giving consumers what they want to keep customers satisfied so keep on coming to the business.
Products and services becoming obsolete-Business need to keep up for the demand of new and more advanced products from customers because of new trends in the market and so need to come up with new ideas to attract more customers and get more revenue.

Question 3

How new business ideas come about?

Answer 3

Improving on original ideas-This means that a business may undergo research and development to better meet customer needs.
Adapting existing products-This helps meet customer needs by adapting the product to make it suitable for different customers or markets.As a result more variety of customers will enter the business.