The Dynamic Nature of Business (Edexcel GCSE 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• Products and services can become outdated due to changes in technology or changes in consumer demand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
  

The best source of original, or adaptive ideas, is being able to identify a problem
(Image credit: Fit Small Business) 

• Original ideas 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 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