Understanding Dynamic Markets

The video tutorial introduces the concept of dynamic markets, which are characterized by rapid and significant changes, often driven by external factors like technology and customer preferences. In contrast, static markets experience little change. Examples of dynamic markets include electric vehicles and streaming services, while static markets include baked beans and toilet rolls. The tutorial also discusses the implications for businesses operating in dynamic markets, highlighting the need for innovation and adaptation to remain competitive.

What is a key characteristic of dynamic markets?

• They experience rapid and significant changes.

• They are unaffected by new entrants.

• They remain unchanged over time.

• They have a constant demand for products.

Which factor is NOT typically associated with making a market dynamic?

• Sudden regulatory changes

• Rapid technological advancements

• Stable customer preferences

• Frequent new market entrants

Which of the following is an example of a static market?

• Baked beans

• Streaming services

• Ride-hailing apps

• Electric vehicles

Why is the market for electric vehicles considered dynamic?

• It has a stable demand.

• It is unaffected by economic changes.

• It involves significant technological innovation.

• It lacks new entrants.

How have streaming services like Netflix changed the media market?

• By eliminating competition in the media industry

• By introducing new ways to consume media

• By maintaining traditional media consumption methods

• By reducing the number of media consumers

What impact have ride-hailing apps like Uber had on the taxi market?

• They have reduced the need for public transportation.

• They have decreased the number of taxi drivers.

• They have introduced new regulatory challenges.

• They have made traditional taxis more popular.

How has Airbnb affected the hotel and rental market?

• By decreasing the number of tourists

• By reducing the number of available rentals

• By increasing hotel occupancy rates

• By providing an alternative to traditional hotels

What is a potential threat for existing businesses in dynamic markets?

• Decreasing consumer demand

• Lack of innovation

• Stable market conditions

• New entrants with innovative approaches

What might businesses need to do to remain competitive in dynamic markets?

• Ignore market changes

• Invest in research and development

• Reduce operational costs

• Focus solely on existing products

How can businesses view changes in dynamic markets?

• As a reason to exit the market

• As irrelevant to their operations

• As an opportunity or a threat

• As a constant threat