The dynamic nature of business - EdexcelProducts and services becoming obsolete
Businesses are dynamic, meaning they constantly adapt to respond to consumers’ wants and needs. Entrepreneurs spot gaps in the market and develop new ideas for products and services.
Obsolete means ‘out of date’. As products become obsolete, new products replace them. For example, DVDs and CDs have largely been replaced with media-streaming services.
Most products have a limited lifespan and, at some point, will no longer be available to buy. This lifespan is known as the product life cycle. The product life cycle refers to the sales of a product over time, from its launch and throughout its lifespan and decline. When a product reaches the end of its life cycle, it is often replaced by an updated version of the product or a totally different product. An example of a product that would be updated is a games console.
Technology
One of the main reasons why products become outdated is technological advancement. As technology develops, products can become obsolete. For example, cash transactions are being used less as the use of card and contactless payments increases. Cars are being updated as petrol and diesel engines are replaced by cleaner hybrid and electric power. Consumers can shop online rather than physically visiting a shop on the high street.
