The dynamic nature of business
Changes in consumer wants
Customer wants are not fixed. The tastes, needs and preferences of customers change over time, so demand for products and services shifts with them. When demand moves, customers whose wants are no longer being met create an opening for a new business idea.
What drives the change
Changes in what consumers want rarely happen on their own. They usually follow wider changes in society — in habits, fashion, health, working patterns or environmental concerns — which then affect what people choose to buy.
| Wider change | What customers want now | New business idea it could create |
|---|---|---|
| Habits | To exercise before work | An early-opening smoothie bar |
| Fashion | Looser, more relaxed workwear | A clothing brand launching a relaxed-fit range |
| Health | Less sugar in everyday food | A bakery selling a low-sugar loaf |
| Working patterns | A proper desk and chair to work from home | A shop selling compact desks and office chairs for small flats |
| Environmental concerns | Food grown close to home | A weekly box of vegetables from nearby farms |
From changed wants to a business idea
Existing businesses often carry on selling what worked in the past, so a change in wants can leave some customers unsatisfied. Spotting that is the start of a new business idea.
For example, in your town more households now keep a dog, and both adults work full time away from home. Those owners want someone to walk the dog in the middle of the day and somewhere safe for it to stay overnight. A dog-walking and day-care service meets a want those customers did not have a few years ago, when far fewer households kept a dog and someone was always at home.
Wants do not change at the same speed for everyone, and different customers want different things, so a change only becomes an opportunity if enough people actually switch what they buy.
Practise this
Edexcel GCSE Business · 1.1.1 The dynamic nature of business
Edexcel GCSE Business · 1.4.3 The marketing mix