Demographics 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 to the Centers for Disease Control and Prevention (2013), “The United States population is growing older”. In many areas, including Europe, Japan, Russia and China there are more people at the age of retirement, than there are people at the age to enter the workforce. This means the number of older adults in the workforce is on the rise. As more workers are looking towards retirement, businesses could risk labor shortages. Adverse effects of the aging demographics may include a surplus in housing and a decrease in consumer’s disposable income for the nonessentials, while creating a need for new human resource strategies to the large departing workforce with equally skilled candidates (Nolop, 2013).
This demographic change can…