Small business plan 2 Research Paper Example | Topics and Well Written Essays - 1000 words

Small business plan 2 - Research Paper Example Typical example of how these behavior and preference is influenced would be the environmental factors which are media, culture and social influences. The level of awareness and knowledge about certain product types also significantly influences market preference. As such, business should always be aware of the changing market motivation and consumer psychology as this has a direct impact on the market’s buying decision. This is important for the company to be able to adapt to the changing environment and keep the business viable. a) Changing Fads – The core of our business which dual/triple SIM celphone is technology based that its trend changes at a dizzying pace. Given the past pace of technology turnover, it is normal that is â€Å"in† today will become obsolete tomorrow. Being in this business requires constant monitoring on technology trend to be able to adapt and respond to the changing fad in technology and guard itself from obsolescence. b) Reaction to Economic Crisis – The market’s buying decision is significantly determined by their purchasing power. As what we have learned during the recent financial crisis, consumers tend to delay or forego purchases to be able to adapt to the economic crisis. Anticipating how the market reacts to a crisis will enable a business to better adapt to a temporary set-back in demand by reducing inventory. This will save the company unnecessary cost as unutilized inventory is an unnecessary cost which could be considered a â€Å"baggage† for any business especially during a financial crunch. c) Innovation in technology – new technology innovations and emerging trends should be monitored by the company to keep itself relevant in the industry. Any trends which could threaten the existing product line into obsolescence should be carefully monitored so that the company could appropriately respond for its survival. a) Deterioration of Customer