Why New Business Ideas Come About: The Pressures That Force Them

The video explores why new business ideas emerge, focusing on the need for businesses to adapt to changing consumer preferences and technological advancements. It discusses the dynamic nature of consumer demand, the impact of technology on business processes, and the concept of product obsolescence. The video also highlights the importance of innovation and adaptation in maintaining market relevance, using examples like Nintendo and Nokia to illustrate these points.

Why do businesses need to constantly adapt and reinvent themselves?

• To maintain a static product line

• To react to changing customer preferences and technological advancements

• To avoid any changes in the market

• To keep their old business models intact

What factors influence consumer demand for a product?

• The number of competitors in the market

• Consumer tastes, confidence, and income levels

• The company's internal policies

• The geographical location of the business

How has the internet influenced business operations?

• By making traditional marketing more effective

• By forcing firms to develop e-commerce platforms

• By reducing the need for online presence

• By eliminating the need for customer interaction

What role do smartphones play in business innovation?

• They reduce the need for customer engagement

• They make traditional marketing more effective

• They force firms to develop supporting apps

• They have no significant impact

What does it mean for a product to become obsolete?

• The product is being rebranded

• The product is still in high demand

• The product is no longer produced

• The product is no longer viable to make due to declining sales

What is a key factor in a product becoming obsolete?

• Increased production costs

• Consumer and technological changes

• Lack of advertising

• High initial demand

What is the first phase of the product life cycle?

• Decline phase

• Growth phase

• Peak phase

• Launch phase

How can businesses extend the life cycle of a product?

• By discontinuing the product

• By implementing extension strategies like rebranding

• By reducing product quality

• By ignoring market trends

Why do companies like Apple release new smartphone models annually?

• To reduce production costs

• To maintain the same product features

• To keep up with technological developments

• To decrease market competition

What happens during the peak phase of the product life cycle?

• Sales begin to decline

• The product is discontinued

• Sales reach their highest point

• The product is launched