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CBSE class 11 commerce entrepreneurship Introduction to Market Dynamics

CBSE class 11 commerce entrepreneurship Introduction to Market Dynamics

CBSE class 11 commerce entrepreneurship Introduction to Market Dynamics:- we will provide complete details CBSE class 11 commerce entrepreneurship Introduction to Market Dynamics in this article.

CBSE class 11 commerce entrepreneurship Introduction to Market Dynamics

CBSE class 11 commerce entrepreneurship Introduction to Market Dynamics

CBSE class 11 commerce entrepreneurship Introduction to Market Dynamics:-INTRODUCTION TO MARKET DYNAMICS

  1. Understanding a Market
  2. Competitive Analysis of the Market
  3. Patents, Trademarks and Copyright

CBSE class 11 commerce entrepreneurship Introduction to Market Dynamics

CBSE class 11 commerce entrepreneurship Introduction to Market Dynamics:-Understanding a Market

1. Why does an entrepreneur need to know about the market?

An entrepreneur need to know about the market because of the following reasons:

  1. A deep understanding of the market is a crucial requirement for venturing into an enterprise.
  2. A feasibility plan, which includes an analysis of the market is required to be prepared by the entrepreneur.
  3. It is important to study the various inputs that have designed the market and contributors to the market.
  4. The data available in the text books may not be relevant for his requirement. So, he has to go into various sources that would facilitate him to understand the information with a reasonable amount of exactitude.

2. What are the sources from which entrepreneur can obtain information about the markets?

The following are the sources from which entrepreneur can obtain information about the markets.

  1. Government sources and information Bureau.
  2. Interaction with potential customers.
  3. Existing entrepreneurs.
  4. Business Magazines and publications.
  5. Annual General Body reports of industries and reports.
  6. Other sources including Research.

3. Name atleast five government agencies from which information regarding the opportunities for a new enterprise could be obtained?

The following are the government agencies from which information regarding the opportunities for a new enterprise could be obtained.

  1. Government Gazettes
  2. Offices of the Industrial Development councils
  3. Export & Import promotion council
  4. Small Scale Industries Development Corporations
  5. Entrepreneurship Development Institutes
  6. Chambers of Commerce and Industries
  7. Nationalized & Scheduled Banks

4. What type of information could be obtained from potential customers?

The following information could be obtained from potential customers.

  1. Customer response to the product feed.
  2. Customer’s expectations regarding the quality and quantity of the product.
  3. Pricing patterns conducive to the customers
  4. Cutomers attitude to competitions in the market
  5. Packaging patterns for the products
  6. Timing and delivery patters to the market

5. How can we get an idea about the competition in the market?

We can get an idea about the competition in the market by doing a comprehensive study of the exising entrepreneurs in the market who would provide the competition to our product or service. Collecting the data pertaining to the following will help in the analysis.

  1. Who are the existing competitors?
  2. What is that they produce?
  3. Where is the souce of their raw materials?
  4. What is the quality consideration of their product?
  5. What is the consumer’s response to their product?
  6. How is their pricing pattern?
  7. What is their distribution channel?

It study will be more fruitful if the entrepreneur himself conducts the role-play of a customer and shops the competitor product or service, use it and arrive at his own conclusion.

6. Identify at least three Newspapers and three magazines dealing with business trends. List what type of information you could obtain from them.

The Newspapers dealing with business trends are: (Write three or more)

  1. Business Standard
  2. Financial Express
  3. The Economic Times
  4. The Hindu Business Line
  5. Mint
  6. Financial Chronicle

The three magazines dealing with business trends are: (Write three or more)

  1. Business Today
  2. Forbes India
  3. Outlook business
  4. Business world
  5. BusinessWeek

We can obtain the following information from these newspapers and magazines.

  1. Business news about the entire spectrum of industries, services and markets.
  2. Professional analysis about
    1. the markets
    2. the business houses
    3. their distribution
    4. the changing consumer needs
    5. the prospects of new consumer goods
    6. and several other things.
  3. The analysis of the financial dynamics facilitating the entrepreneur to make his own calculations with regard to the investment.
  4. Professional consultancy to the new entrepreneurs
  5. The status of the stock exchange based on the fluctuations of the market to the global political and economical situations.

7. Listen to the Business news atleast on two channels for three days. Make a summary of the highlights. What type of information you could obtain from them.

(Students are required to prepare the latest summary of highlights after listening to the news channels. As this information will be varying, I’m leaving it for the students to prepare the answer to this part).
We can obtain the following information from the business news on these channels.

  1. Business news about the entire spectrum of industries, services and markets.
  2. Professional analysis about
    1. the markets
    2. the business houses
    3. their distribution
    4. the changing consumer needs
    5. the prospects of new consumer goods
    6. and several other things.
  3. The analysis of the financial dynamics facilitating the entrepreneur to make his own calculations with regard to the investment.
  4. Professional consultancy to the new entrepreneurs
  5. The status of the stock exchange based on the fluctuations of the market to the global political and economical situations.

CBSE class 11 commerce entrepreneurship Introduction to Market Dynamics:-Competitive Analysis of the Market

1. Why is a competitive analysis of the market necessary?

A competitive analysis of the market is necessary for the following reasons:

  1. To get an insight into the status of the market for the entrepreneur’s product or the service.
  2. To get a real and a pragmatic picture of the strength and marketability fo the product in comparison to the like in the market.
  3. To understand the market forces and their influence on the vulnerability fo the products or services marketed by a particular entrepreneur.

2. What information does the entrepreneur get through competitive analysis?

A competitive analysis of the market is necessary to know the following:

  1. The vector dimensions of the market
  2. The potential entrants into the market
  3. The direction of change in the consumer trend
  4. The direction of change in the type and quality of the products
  5. The potential buyers in the market
  6. The threat of substitutes or new products.

3. How does the entry of the new entrepreneurs affect the existing entrepreneurs?

The entry of the new entrepreneurs affect the existing entrepreneurs either in terms of

  1. a new idea
  2. a new package
  3. a new service
  4. lower cost etc.

This might destabilize the existing entrepreneurs dominance in the market.

This threat could enter in the following models:

  1. Through large-scale capital interventions
  2. Through large-scale volume interventions
  3. Through large-scale distribution interventions
  4. Through establishing a distinct competency

4. How does high capital investment enterprises affect a small entrepreneur?

High capital investment enterprises affect a small entrepreneur in the following ways:

  1. The small entrepreneurs lose their monopoly market, if the product/service is unique in nature.
  2. The market life of small entrepreneur’s product is reduced.
  3. It results in disequillibria in the market for the small entrepreneur.
  4. The quantum of capital investment may be so large that the moderate or small-scale entrepreneur might find it extremely difficult to compete them due to lack of investments matching the new entrant.
  5. when the high capital investment enterprise is a multi-national player, the investment might be so large that it severely affect the indigenous entrepreneur.

6. How does the volume of flow of goods in the market affect a new entrepreneur?

The volume of flow of goods in the market affect a new entrepreneur in the following ways:

  1. When the volume is more from any single entrepreneur, it creates a disequillibria in the market.
  2. The new entrepreneur might lose his market as the consumers would incline towards a product or service that is easily accessible.
  3. The new entrepreneur would not be able to provide the needed supply to the market.
  4. This might even throw the new entrepreneur into greater risk, if such inflow is not anticipated before entering the market.

7. What marketing strategies you would suggest to a new entrepreneur facing the challenge of mass production and distribution in the market?

I suggest the following marketing strategies for an entrepreneur facing the challenges of mass producton and distribution.

  1. They should capitalize the established brand name to retain their customers.
  2. Braining in innovative products will help them to sustain their market share, though the regular products and services are available abundantly in the market.
  3. They should have a strategic plan to ensure that their market share is sustained.
  4. They should start building a well organized distribution systems.
  5. They should have a good hold in the market and try to penetrate into the market.

8. Why a good network of the distribution systems essential for an entrepreneur?

A good network of the distribution systems is essential for an entrepreneur due to the following reasons.

  1. Access to the potential market becomes easy.
  2. Brings a fair advantage in the market over the others, though his product may not hae that defined quality as that of the other entrepreneurs.
  3. Helps the entrepreneur to maintain the hold he has in the market vis-a-vis that of the counterparts
  4. Drives the penetration in the market and helps the entrepreneur to have a hold on the market, there by leading to the success of the entrepreneur.

9. What impact does branding have on a market?

  1. Branding helps the products to remain as unique without any competition.
  2. It creates a recognition for the product among the consumers.
  3. Branding helps in increasing the reputation or the status of the entrepreneur thus creating more weight-age for any new ventures.
  4. Establishing a brand makes it difficult for the competitors to establish a competition.
  5. For an entrepreneur without a brand image, it requires more effort to establish competence and sustainability for his product.
  6. When an entrepreneur enters the market with recognized brands it becomes easy to grab the market shared by an established entrepreneur.

10. What suggestions you would offer to a new entrepreneur who has to fight against an established brand of consumer good?

The following suggestions will be of help for a new entrepreneur who has to fight against an established brand of consumer goods.

  1. They should strategically plan and try to penetrate into the market. Being more innovative will be of great help to divert the customers who are accustomed to an already estabilished bran.
  2. They should try to establish their own brand or image or service.
  3. They should demonstrate a strong competence and sustainability of their product or service.

11. How does the power of buyers affect an entrepreneur?

Depending upon the power of buyer, they may be classified as industries, wholesale agents or people dealing with customer services.
In such cases there are limited buyers for the goods produced. Under these circumstances, the buyer always has an advantage. The buyer tends to dictate terms to the entrepreneurs with regard to the quality, cost, quantity and time of deliver to the entrepreneurs.
On many occasions, the entrepreneurs have to hold stocks of their goods or produce to meet the requirements of the buyers.
When the buyer is strong and the number of producers are more, it leads to a healthy competition among the producers leading to certain terms with the buyer.

12. In the event of a limited supply of raw material, what precautions you would suggest to a new entrepreneur to keep his product line alive?
In the event of a limited supply of raw material, the new entrepreneurs should exercise the following precautions to keep their product line alive.

  1. They should try to maintain adequate inventory of the raw material.
  2. Strategic planning and forecasting of the demand for their product or services, well in advance, can help them to meet customer demands.
  3. They should ensure that a back up plan is already available so that whey the supply from one vendor is affected, it’ll be available from the other.

13. How does the emergence of substitutes affect the existing market of a given product? What suggestions you would offer to an entrepreneur to meet the challenge?

As the market is hightly competitive, entrepreneurs tend to innovate and introduce new types of products, to suit to the taste or the fancy of the consumers.
This leads to the creation of the new products, alternatives, substitutes to make their way into the market.
The emergence of the new substitutes, alternatives might pose a potential threat or a competition to the existing market stability of the entrepreneur.

To meet these challenges, the entrepreneurs may adopt the following strategies.

  1. Keep a close watch on the market and keep their product or service up to date with the market and consumer trend.
  2. Try to ensure that they upgrade and release better product or service into the market before the competitors.
  3. Keep studying the consumer behaviour and change their product or service accordingly.
  4. Establish a good brand in the market.

CBSE class 11 commerce entrepreneurship Introduction to Market Dynamics

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CBSE class 11 commerce entrepreneurship Introduction to Market Dynamics

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