To What Extent Does Demographic Growth Represent More Of An Opportunity That A Threat To UK Businesses
To what extent does demographic change represent more of an opportunity than a threat to UK businesses?
Demographic change can be defined as the change in characteristics of a certain population which has taken place over history. Characteristics include things like gender, race and age. UK businesses can face opportunities due to demographic changes such as a larger and more specific market for business due to demographic change. However they can also face drawbacks such as the struggle niche business may face when there is a demographic change of a larger population of over 55’s.
One of the opportunities demographic changes creates for businesses is that it allows them to become more dynamic and start to specialise in to a new market segment which has very little competition and has very high potential for future growth. One company which has shown this was the holiday company Saga which specialises holidays for the retired/elderly. They have done this by offering good rates for cruises and tours which appeal to the older generation. This gives the business a great opportunity to grow and expand in the UK due to the recent demographic change. Also, by Saga becoming one of the first companies to start such a niche business for a specific group, the business was able to exploit first mover advantage. This allowed the business to establish itself very well with the elderly holiday maker market and hence achieved good customer recognition which may result in higher sales revenue thus potentially higher profits. Furthermore, it has allowed the business to expand in to other countries which also had the potential to grow in the over 50’s market. This in effect gives firms the ability to dive in to other markets which also hold potential for future demographic growth. This was shown by Saga again when they tapped in to the insurance sector for over 50’s. Diving in to new markets allows the business to generate larger revenues and establish itself as a very
Demographic change can be defined as the change in characteristics of a certain population which has taken place over history. Characteristics include things like gender, race and age. UK businesses can face opportunities due to demographic changes such as a larger and more specific market for business due to demographic change. However they can also face drawbacks such as the struggle niche business may face when there is a demographic change of a larger population of over 55’s.
One of the opportunities demographic changes creates for businesses is that it allows them to become more dynamic and start to specialise in to a new market segment which has very little competition and has very high potential for future growth. One company which has shown this was the holiday company Saga which specialises holidays for the retired/elderly. They have done this by offering good rates for cruises and tours which appeal to the older generation. This gives the business a great opportunity to grow and expand in the UK due to the recent demographic change. Also, by Saga becoming one of the first companies to start such a niche business for a specific group, the business was able to exploit first mover advantage. This allowed the business to establish itself very well with the elderly holiday maker market and hence achieved good customer recognition which may result in higher sales revenue thus potentially higher profits. Furthermore, it has allowed the business to expand in to other countries which also had the potential to grow in the over 50’s market. This in effect gives firms the ability to dive in to other markets which also hold potential for future demographic growth. This was shown by Saga again when they tapped in to the insurance sector for over 50’s. Diving in to new markets allows the business to generate larger revenues and establish itself as a very