1-1-1-The-Dynamic-Nature-Of-Business

Why new business ideas come about

• New business ideas often come about due to changes in technology, changes in consumer demand, and the obsolescence of products and services

• New business ideas emerge as entrepreneurs recognise opportunities created by changes in the market

• Successful businesses can identify these opportunities and develop innovative solutions that meet the changing needs of customers

Changes in technology

• Advances in technology can create new opportunities for businesses to develop innovative products and services

  • E.g. The emergence of smartphones and social media platforms created new opportunities for businesses to reach customers through mobile apps and digital marketing 

Changes in what consumers want

• Consumer demand often changes over time, creating opportunities for businesses to develop new products and services that meet these changing needs

  • E.g. The growing demand for plant-based food products has led to the emergence of new businesses in the food industry

Products and services becoming obsolete

• Products and services can become outdated due to changes in technology or changes in consumer demand

• This can create opportunities for businesses to develop new products and services that meet the needs of consumers in new and innovative ways

  • E.g. The decline of physical media like CDs and DVDs created opportunities for businesses to develop digital streaming services like Netflix and Spotify

How new business ideas come about

• New business ideas can come about through original ideas or by adapting existing products, services, or ideas

• The key to business success is identifying a need or opportunity in the market and developing an innovative solution that meets the needs of customers in a unique and valuable way

Original ideas

• These are new and unique concepts that are not based on existing products/services, or ideas

  • They often arise when entrepreneurs identify a gap in the market or a new need that has not yet been met

  • Original ideas can be based on a new technology, a new market, or a unique perspective on an existing problem

  • E.g. The business Nutrigene offered a subscription service for personalised vitamin supplements based on an individual’s DNA, which was an original idea that was not based on an existing product or service

Adapting existing products, services or ideas

• This involves taking an existing concept and making it better or more suitable for a different market or customer base

  • This approach often involves identifying a problem with an existing product or service and developing a solution that addresses the problem

  • E.g. The ride-sharing app Uber adapted the existing concept of taxi services by offering a more convenient, efficient, and cost-effective solution that was accessible through a mobile app