The Dynamic Nature of Business Flashcards

All 7 cards in this deck

Give the three main reasons why new business ideas come about.

Changes in technology, changes in what consumers want, and products or services becoming obsolete.

Give one way a change in technology can create a new business idea.

e.g. faster mobile internet

It allows new products or ways of selling, e.g. faster mobile internet allows a business to sell through an app.

Give one way a change in what consumers want can create a new business idea.

e.g. more people choosing plant-based diets

Businesses start up to meet the new demand, e.g. a café selling only vegan food.

What does it mean if a product or service has become obsolete?

It is out of date and no longer wanted or used, usually because something better has replaced it.

What is the difference between an original business idea and an adapted one?

An original idea is completely new to the market; an adapted idea changes or improves a product, service or idea that already exists.

True or false? A new business idea must be completely original to succeed.

False. Most new businesses adapt an existing product, service or idea rather than inventing something new.

True or false? When a product becomes obsolete it creates an opportunity for new businesses.

True. The gap left in the market can be filled by a newer product, e.g. streaming services replacing DVD rental.