Consumer Trends: Adapting to Changing Preferences for Business Success
In today’s world of rapidly changing consumer trends, it is only wise that companies try to keep up with these changes so as to remain in business. This is largely because the consumer is becoming more concerned with the products they consume e. g. effects of high calories. The analysis of the following case study affirms this change in consumer trends. 1. Consumer trends The changing consumer tastes is one of the driving forces behind product innovation. This is epitomized by the recent consumer trends like low ‘carb’ and going ‘green’.
Trends like these have forced companies to come up with products/processes that meet consumer demands. Like the dot com craze of late 1990s, the low carb and environment awareness are largely fuelled by customer awareness. These trends are usually force companies to align their products with the changing preferences. And is rightly so because companies that defy these trends may suffer drop in revenues. An example is the American carmakers that belatedly adopted hybrid technology when their Japanese counterparts were already benefiting from the technology.
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Such trends lead to the market flooding with similar companies has witnessed with the dot com bubble although the low carb and environmental preservation trends may persist because of the awareness of effects of high carbohydrates and environmental pollution. Most of the internet companies collapsed (Cable World 2001). 2. Threat to entrepreneurs The entry of industry giants like Dell and Gateway companies into the computer recycling business with present problems to Stampp Corbin in the sense that he might lack used computers to resale. Legislations may also be passed that does not allow the resale and disposal of used computers.
Such laws may require that computers of a certain age cannot be resold. Laws governing electronic waste from computers can substantially affect the business. The recycling of the computers by manufacturers can lead to cheaper production of new computers such that entrepreneurs like Stampp Corbin may lack the market for the used computers. The sensitive information in the used computers may also pose a serious threat of lawsuits if it accidentally falls in the wrong hands. The software used to delete this information may not be effective in the long run with the development of new technologies that could hold data permanently.
All the above factors can affect Corbin’s business severely. 3. Competitive advantage Retro Box Company is one of the pioneers of the electronic recycling business and therefore the existence in the market for a long time leads to the company developing good business relations with the suppliers and customers also thus ensuring constant supply and availability of the market. Another advantage is the ability of Retro Box to safeguard itself from lawsuits that may result from leaked information. The company has done this by developing tailor made software that can erase such data completely.
4. Protection from changing consumer preferences and laws One of the important factors that companies can do to avoid loss of business due to changing consumer preference is through innovation and anticipating future needs of consumers. Thereby the new product development will be guided by future consumer needs and expectations (PRNewswire 2008). The company also need to be aware of the effects that their products have on the environment and hence come up with innovative ways of dealing with there effects thus avoiding the need of regulations through laws which can be costly in the long run.
Conclusion It is therefore paramount that companies embrace consumer trends through anticipating their needs and thus coming up with innovative products that keep up with changing preferences. References: Cable World (2001). MSO defies dot-com trend-Against the Grain. Retrieved on 30/4/2008 from http://findarticles. com/p/articles/mi_m0DIZ/is_/ai_80191576 PRNewswire (2008). Food marketers challenged to meet consumer tastes in 2008. Retrieved on 30/4/2008 from http://www. reuters. com/article/pressRelease/idUS187846+29-Jan-2008+PRN20080129
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Consumer Trends: Adapting to Changing Preferences for Business Success. (2016, Jul 30). Retrieved from https://phdessay.com/case-5-consumer-trends/
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