hi there let's take a look at a concept known as dynamic markets now of course every industry and market is dynamic in the sense that it changes over time but the point about dynamic markets as a concept is that some markets are more dynamic than others so that's what we mean by dynamic markets we recognize that every industry every market changes in some way over time however it's the pace and it's the nature of that change which varies considerably and markets that are subject to continual and rapid change are known as dynamic markets markets that don't change much or maybe slowly imperceptibly over time they're known as static markets so dynamic markets a market that is subject to continuous continual and rapid and often significant change and one consequence of that in dynamic markets is that existing operators and competitors and their business models are often put under threat typically by new entrants into the market perhaps using more innovation so what is it that causes this change to make a market dynamic well just think about the external environment and how those things the factors in the external environment may change if those are significant then we're looking at dynamic markets so for example our customer tastes and preferences changing perhaps not overnight but quickly over over a matter of weeks and months is technology changing the way that products and services are designed or are delivered do they change the way that customers buy or consume goods and services does the market have a high degree a high number of new entrants looking to get into the market perhaps with a more innovative or different way of delivering products and services is the market subject to uh significant maybe sudden changes in the political the regulatory the legal environment that can create the kind of change that throws everything into the air and also is the market affected changed by variations in the economic environment so for example a sudden economic downturn does that suddenly change the dynamics of a market well if you're thinking about dynamic markets i'll give you a couple of examples in a minute let's think about the alternative what about markets that don't change much over time these so-called static markets uh let's give you a couple of examples starting with one of my favorites it's the one i always use if i'm describing a market that isn't dynamic it's bait beans i mean for all i know there could be a lot of product innovation in the baked bean market i've i've not come across it but in general the baby market is pretty static you know it's beans are cooked put in a can and sold to two outlets to supermarkets convenience stores and the rest not a lot of innovation and change in that market and the demand for baked beans is pretty pretty constant and if people eat too much baked beans here's another example of a market that i think is also pretty static not particularly dynamic toilet rolls i mean people are always going to want to have toilet rolls and you maybe stick a labrador on the front of one of the packages and sell a premium price on the brand but by and large the market for toilet rolls is pretty static not a lot happening really so let's compare and contrast those static markets with the few examples of dynamic markets the first one i think which is a really interesting market to follow is the emerging market for electric vehicles obviously cars but also commercial vehicles as well such as vans and buses and the development of electronic vehicles or electric vehicles is itself creating a whole new ecosystem of other goods and services for example charging points either installed into the home or installed into public areas such as car parks supermarkets and service stations that is significantly changing the dynamics of the car and vehicle manufacturing industry consider how the market for media the consumption of media is changing and has changed as a consequence of the emergence of streaming services such as netflix and disney plus another example how the taxi market in many cities and towns has been disrupted by the emergence of hail riding apps such as uber and ride significant change and significant impact of regulation as well as a consequence of those new ways of delivering a ride in a van not a van a car or a minibus and my last example which i think is a really interesting example for the hotel and rental market is the emergence of uh apps and services such as airbnb which is significantly changing the dynamics of the rental market if you're a landlord and also obviously the hotel market are competing against the the ability of homeowners to to rent their properties out their flats and their houses to tourists so there's just four examples of what i think are genuinely dynamic markets i'm sure you've got some great examples of your own why don't you stick your examples in the comments box and be instant to see what what examples of dynamic markets you've come up with a final word because this is an examiner favorite this topic what are the implications of operating in a dynamic market well clearly depending on your position in that market you'll either see change as an opportunity or a threat so often existing market leaders for example existing businesses they'll see that the dynamic nature of their market as a threat for example new entrants coming into the industry perhaps providing a more innovative or different way of delivering a product or service another issue another implication is that businesses need to recognize need to be alert to those changes and those that don't often get caught short those that do and are alert to the change one of the implications can be that they need to incur additional costs in order to respond for example investing in research and development and it's often the case that businesses that are alert to change find a way of competing and adjusting their business model by investing in innovation in order to remain competitive there we go then that's just an introduction to an overview of this concept called dynamic markets you