Capitalism is an economic and political system of production and trade based on property and wealth being owned by private business and ordinary people, rather than the state (The Financial Times 2012). Modern capitalism can be referred as post-war capitalism (Amable 2003). The study of the operations of capitalism is crucial because everyone is involve in it whether one is a capitalist, targeted customer or both. This essay will explain why the PESTLE framework (Politics Economics Society Technology Law Environment) is such a useful tool and also why sometimes it is not.
In order the understand modern capitalist, history must be revised so that lessons can be learnt. The world has witnessed the economic boom after the World War II. From …show more content…
Changes in technology provides businesses with two opportunities: new products and product processes. In some industry, developing new product is vital to their competitiveness for example the tablets industry. It depends on how long the average product life cycle (PLC) is for that particular product. For smart phones, the PLC can be as short as one year. It is crucial for a technological company to keep up with the trends or come up with new ones. Take Nokia for instance. Their smart phone market share in 2007 was 49.4% then plummeted to 3% in 2013 (BBC 2013). 2007 was the time when Steve Jobs debuted Apple first smart phone and that changed the world. Nokia’s phones was no longer relevant because they missed out the importance of software. The lack of development in technology is likely to lead to falling in sales or even threatens the survival of the business. Consumers benefit from this mostly as more firms having access to new technology will lead to high competitiveness in price. Technology is used to produce everyday products too. Many firms nowadays are much more capital intensive. This can create redundancy among the staff which will then lead to higher unemployment rate or structural unemployment. The reason for this is machines can do thing faster comparing to human which are not always in their best form and have all sorts of different problems. E-commerce is very notable as well. E-commerce is concerned with the buying and selling of products using electrical systems. This new type of market brings many benefits to businesses and consumers. By putting their products online, everyone with internet connection can have access to it 24/7. This saves businesses a lot on rental and utilities. For consumers, they can now purchase goods anytime and anywhere with the help of mobile
In order the understand modern capitalist, history must be revised so that lessons can be learnt. The world has witnessed the economic boom after the World War II. From …show more content…
Changes in technology provides businesses with two opportunities: new products and product processes. In some industry, developing new product is vital to their competitiveness for example the tablets industry. It depends on how long the average product life cycle (PLC) is for that particular product. For smart phones, the PLC can be as short as one year. It is crucial for a technological company to keep up with the trends or come up with new ones. Take Nokia for instance. Their smart phone market share in 2007 was 49.4% then plummeted to 3% in 2013 (BBC 2013). 2007 was the time when Steve Jobs debuted Apple first smart phone and that changed the world. Nokia’s phones was no longer relevant because they missed out the importance of software. The lack of development in technology is likely to lead to falling in sales or even threatens the survival of the business. Consumers benefit from this mostly as more firms having access to new technology will lead to high competitiveness in price. Technology is used to produce everyday products too. Many firms nowadays are much more capital intensive. This can create redundancy among the staff which will then lead to higher unemployment rate or structural unemployment. The reason for this is machines can do thing faster comparing to human which are not always in their best form and have all sorts of different problems. E-commerce is very notable as well. E-commerce is concerned with the buying and selling of products using electrical systems. This new type of market brings many benefits to businesses and consumers. By putting their products online, everyone with internet connection can have access to it 24/7. This saves businesses a lot on rental and utilities. For consumers, they can now purchase goods anytime and anywhere with the help of mobile