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Business Studies IGCSEPDF 93
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Enter new markets (domestically or internationally)
Develop new products or improve existing ones
5. Market Changes
Why Customer Spending Patterns Change
● Changing tastes and preferences
● Advances in technology – new technology makes older products outdated
● Changes in income – higher income → luxury products; lower income → cheaper
alternatives
● Ageing population – increases demand for senior-related goods (e.g., health
products)
The Importance of Adapting to Changing Needs
Businesses must regularly monitor customer preferences.
Failing to adapt leads to a loss of customers to competitors, reduced sales, and lower
profitability.
Why Markets Have Become More Competitive
Globalization – products are sold worldwide
Improved transportation – easier and cheaper product distribution
Internet and E-Commerce – global online shopping increases competition
How Businesses Can Respond
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