What are the implications of the changing population demographics for business firms?
Changing the demographics of a company would be like transplanting the company from their propitious niche (Wheelen & Hunger, 2012, p. 177) to unfamiliar ground. With the change in demographics business firms have to keep in mind their prospective audience and clientele. As the number of senior citizens increases and middle age individuals decreases their advertisements, and products must change with the changing demographics (Badkar, 2011). Companies form their strategic plan around their market. Within any market that demographic is changing however, that change is gradual. It allows the business to compensate and change direction as the market does.
According …show more content…
According to Bruce Nolop (2013) the changing population demographics will create market opportunities for the industries serving the elderly such as healthcare, financial services, and leisure activities. Emerging markets include China and India and represent about 70% of the world growth. “Emerging markets will be not only be a source of significant revenue growth for companies but also a source of talent, true innovation and ground-breaking approaches to business, which they will leverage on a global scale” (Ernst & Young Global Limited, n.d.).
What is the replacement birthrate (total fertility rate) for the US, and other developed countries, and what does this mean for business firms?
The replacement rate is the rate at which children must be born to maintain population. (LifeSiteNews, 2014). A contributing factor in the fertility rate, according to Cheryl Wetzstein (2014), is the increasingly popular social trend of woman putting an importance on their career and life experience while waiting till later in life to have their first child. Birth rates are on a decline around the world. Even in emerging markets that were seeing a rapid population boom seemed to slow with the economic crisis and there has been no signs of this trend changing. “Italy, for example, has a fertility rate of 1.4. Only 14% of its population is under 15 and 21% is 65 and older. Its population is flat. Japan is also at 1.4, …show more content…
2). The US birth rate reduced by 8% from to 2006 to 63.2 per 1000 women of child bearing age. Also, the United Nations says that the world’s population is aging. This is due to a reduction in birth rates and increase life expectancy of developed countries. In developing countries the birth rate in on the rise and the world population is expected to reach 9 billion by 2050 ("U.N.," 2014, p. 1). This in turn mean a reduction in the ratio of works versus those retired. With less people working that means a slower recover from the recession according to Adam Ozimek of Forbes (Ozimek, 2013, para. 6). Ozimek goes on to say this reduction in birth rates increases immigration. Also without this increased immigration we would see a 12% increase in the social security
Changing the demographics of a company would be like transplanting the company from their propitious niche (Wheelen & Hunger, 2012, p. 177) to unfamiliar ground. With the change in demographics business firms have to keep in mind their prospective audience and clientele. As the number of senior citizens increases and middle age individuals decreases their advertisements, and products must change with the changing demographics (Badkar, 2011). Companies form their strategic plan around their market. Within any market that demographic is changing however, that change is gradual. It allows the business to compensate and change direction as the market does.
According …show more content…
According to Bruce Nolop (2013) the changing population demographics will create market opportunities for the industries serving the elderly such as healthcare, financial services, and leisure activities. Emerging markets include China and India and represent about 70% of the world growth. “Emerging markets will be not only be a source of significant revenue growth for companies but also a source of talent, true innovation and ground-breaking approaches to business, which they will leverage on a global scale” (Ernst & Young Global Limited, n.d.).
What is the replacement birthrate (total fertility rate) for the US, and other developed countries, and what does this mean for business firms?
The replacement rate is the rate at which children must be born to maintain population. (LifeSiteNews, 2014). A contributing factor in the fertility rate, according to Cheryl Wetzstein (2014), is the increasingly popular social trend of woman putting an importance on their career and life experience while waiting till later in life to have their first child. Birth rates are on a decline around the world. Even in emerging markets that were seeing a rapid population boom seemed to slow with the economic crisis and there has been no signs of this trend changing. “Italy, for example, has a fertility rate of 1.4. Only 14% of its population is under 15 and 21% is 65 and older. Its population is flat. Japan is also at 1.4, …show more content…
2). The US birth rate reduced by 8% from to 2006 to 63.2 per 1000 women of child bearing age. Also, the United Nations says that the world’s population is aging. This is due to a reduction in birth rates and increase life expectancy of developed countries. In developing countries the birth rate in on the rise and the world population is expected to reach 9 billion by 2050 ("U.N.," 2014, p. 1). This in turn mean a reduction in the ratio of works versus those retired. With less people working that means a slower recover from the recession according to Adam Ozimek of Forbes (Ozimek, 2013, para. 6). Ozimek goes on to say this reduction in birth rates increases immigration. Also without this increased immigration we would see a 12% increase in the social security