QHO-536 Global Challenges Assignment Sample
Introduction Of Evaluation Of The Technological Advancements And Demographic Megatrends Which Are Impacting The Business Landscapes Assignment
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Megatrends are geostrategic forces that are shaping the world. Megatrend is an irretrievable transformation that disturbs the market and leads to innovation. It is the process which leads to affect the lives of everyone with societal, economic, and cultural consequences across the world. A megatrend is a general trend of development that consists of several phenomena or wide-changing processes. These megatrends are considered to occur at a global level and development regarding these megatrends is often believed in the same direction (Linthorstand de Waal 2020). Megatrends are the familiar things or changes that are already present today and most probably in the upcoming future. These megatrends provide a very useful view of future changes which can be narrowed down by focusing on details of trends, and weak points, by analyzing the problem of trends. These trends affect the compulsory adoption of changes for better performance and survival of the business.
There are five major megatrends which are resource scarcity, rapid urbanization, global economic power, rise in technology, and demographic change. The proper analysis of megatrends helps in better planning, and growth, and provides great opportunities for companies' future strategies (Lichtenthaler, 2021). A better analysis of megatrends also helps companies to gain competitive advantages in the market. This essay further discusses evaluating the insight of megatrends and their impacts on the business landscape, outlining innovations and overcoming challenges faced by companies.
Analysis and evaluation of megatrend and their impact on the business landscape
Megatrends are a global phenomenon that changing society and the way business runs in the market. These are the forces that shape business lives and the socio-economic norms for the future. Megatrends analysis helps companies to build a long-term strategy that is practical and provides a clear positioning of the company, and where they stand today. On the other hand, these trends also ensure that companies have a plan to be relevant and keep moving forward (Artuso and Guijt 2020). Megatrend analysis helps companies to establish a long-term strategy that enables businesses to anticipate market development and also helps to lead both incremental and disruptive changes in industries. These analyses are leveraged as a key input of innovation in all internal and external areas of business. Megatrends help to provide shape to consumers and businesses in the present and will continue to do so in the future.
An organization needs to form its strategies properly so that it is easy to adapt to megatrends (Colnot and Sirtori 2020). For every business to succeed in the fast-growing market require staying ahead of changes in consumer behaviour, meeting problem directly, and analyzing megatrends. Megatrend analysis is not limited to new product development, but it is the key input of innovation in all areas of business. For example, megatrend analysis applies everywhere in business from strategic planning to redefining the vision and mission of business, etc.
Companies operating in a rapidly changing environment with high competition and increasing difficulties in matching the steps with the industries required to follow the megatrend analysis. This analysis involves four steps that show companies when and where they can take advantage to achieve long-term goals (de Waal and Linthorst 2022). The first step involves defining megatrends, by identifying the changes in consumer behaviour or attitude concerning global consequences. The second step is to identify the reason behind long-term shifts in behavior and attitudes by analyzing factors that drive megatrends. The next step is to build a comprehensive list of megatrends that have a great impact on business, and the last step is to sort out those megatrends which affect business the most.
For successful implementation of these four steps of analysis, companies need to follow a megatrend analysis process which involves the following steps. First is to identify and assess the megatrend that is affecting the most, next is to evaluate and measure the most influential megatrends and evaluate its speed, direction, and impacts on the market. And the last step in the process is to adapt and grow, which means finding innovative solutions that match future megatrends (Gajdziket. al. 2020). With help of this analysis, the company has a long-term view, which allows the business to be innovative and competitive in the market. In every business, there are various implications of megatrends, for predicting future needs and requirements. Different megatrends affect differently to the company. In today's world, several megatrends are identifiable, which influence the present as well as the future of companies.
Five major megatrends are the most popular and relevant to opportunities
The first megatrend is technological advancement or rise in technology, technology is fast growing sectors of the market each day there is something new in technology. Development in technology affects many areas of business but is also a megatrend in the market. By use of artificial intelligence, nanotechnology, and other development are all leading to increasing productive potential and providing new opportunities. Technology advancement is the biggest megatrend which is providing companies with new opportunities and innovative growth strategies. The next important megatrend is rapid urbanization, people moving from rural areas to urban areas for better opportunities is part of old trends but it is as much important as it was back then. In the 1950s, less than 30% of people were living in urban areas but currently, that portion has increased up to 50%.
Urbanization is a megatrend by which people get opportunities to shift to a better and bright future. The next megatrend is the shift in global wealth or shift in global economic power, this megatrend discusses impacts on production standards of business in the economy as well as in the market (Lebedeva, 2019). The other important megatrend is demographic and social change; it affects areas like the growth rate of the country, the standard of living of people, productive growth, investment, and savings. The last megatrend is climate change and resource scarcity, which involves matters like increasing populations, scarce resources, and environmental issues. All these megatrends affect those companies which are working in a highly diversified market. The impacts of megatrends depend on characteristics, nature, and the variety of products and services the companies are offering in the market (P?ciak, 2016). By following all these megatrends companies can achieve goals and objectives.
Impact of megatrends on Amazon
The impact of megatrends on Amazon is analysed through its meaning as Megatrends are powerful forces that can change business across the world, which can affect society and the global economy. It also affects the living standard through the introduction of electricity, automobiles, and most importantly internet. Megatrends are a kind of structural shift which is quite long in terms of nature and also have an irreversible impact on the world. Knowledge about megatrends provides benefits in investment processes and with the help of that, megatrends also influence investment decisions by finding opportunities (Cavusgil, 2022). Megatrends are further divided into four categories first one is demographic shifts, which refers to changes in aspects of population statistics such as age, income, size, and mortality rates. Demographic megatrends involve factors like population growth, ageing population, and immigration. The next megatrend is a change in political conditions which means dynamics that are related to the process of elected officials as well as the formulation of policy and programs.
The most important and popular megatrend is technology development; it involves trends related to technological areas, which includes all the changes and innovations occurring across the world. The next important megatrend is economic dynamics; these are changes in the production and trading of goods and services across the world (Malik and Janowska2018). This megatrend involves all the factors that affect the economy of the country.
In this essay, there is a detailed discussion about the impacts of three major megatrends on the Amazon. Amazon is a multinational company that involves e-commerce, cloud computing, digital streaming, and artificial intelligence. Its headquarters are in Seattle, Washington. Amazon also known as Amazon.com is an internet-based company that deals in selling books, music, movies, electronics, and many other goods which either sell directly or through the involvement of middlemen.
Amazon is referred to as one of the most popular influential cultural and economic forces across the world and also one of the leading brands. Amazon was founded by Jeff Bezos in Bellevue, Washington on July 5, 1994. In the initial stage, it started to sell books on an online platform and now it has expanded into selling multiple products (Crespo-Lopez et. al. 2021). According to changes in technology and the needs of society Amazon has adapted lots of new innovative strategies that make the company successful.
The Amazon effect has changed the experience and patterns of consumers and also the patterns of retailers managing their supply chain. Amazon always finds opportunities with megatrends, these megatrends help the company to be more innovative and come up with new and advanced strategies to achieve its goals. One of the megatrends which are technology development or technology advancement plays an important role in Amazon, as it is mentioned above depending highly on technology.
Amazon is already leading the number 1 megatrend which is digital transformation. It is well known how digitalization is affecting the aspects of the life of consumers as well as retail purchasers to health care management. Amazon is doing quite well in dealing with technology advancement by creating a database that it is a huge and valuable commercial success (Smith and Linden 2017).
The impacts of this megatrend on Amazon are quite effective because it is an e-commerce company, whose work depends on technology and online platforms. The company must match the steps with megatrends and do a timely update of its strategies which will provide the company with great revenue and help in achieving its desired goals. Technology advancement helps Amazon continue with its position as a leading brand in e-commerce and cover the large market share across the international market.
Demographic shifts and its impact on Amazon
The second important megatrend that impacts Amazon is demographic shifts, with the ageing of society Mr Bezos has sight of the natural consequences, it is a megatrend where real value could be created. With a billion people over the age of 55 doubling their size over the next few years, would be the biggest megatrend. To maintain huge revenue growth in the upcoming years, all these are driven by demographic shifts (Cullen, 2022).These megatrends create a big impact on Amazon, as the company has to come up with innovative and effective strategies.
The increase in long lives, even to hundred years, are all building into modern society as drowning birth rate and more old than young everywhere. In this new older world, where all people are focusing on eating healthy foods Amazon is coming up with Whole foods specialty which provides all the fresh and healthy stuff to its customers. Amazon is providing all the groceries products which healthy and fresh with the benefits of fast delivery where customers can order its healthy foods from their homes only. As it is known that Amazon's fast delivery service is very popular, the company is also focusing on providing fresh groceries on time to its customers.
Amazon has a big warehouse where it can store its products and make them available to its customers. For providing successful fast delivery services Amazon is also working on its trucking services that will make available goods to every corner of the world within time. Amazon is also planning on opening warehouses in every regional area where it can easily reach its customers. To deal with demographic shifts Amazon pushes itself to provide more facilities to customers and by that company can reach each segment of its customer base, whether it is the young generation or the old generation. Amazon is focusing on fulfilling the needs and demands of every kind of its customer and providing its service to every area of the world. By dealing with all the megatrends Amazon has achieved a great place in the market where other companies can learn some tips and tricks about how to deal with megatrends and plan to make strategies.
Reflection on megatrends as a future manager
Reflection as a future manager and the effects of megatrends is discussed directly or indirectly affecting the performance of the company and also its profits and every manager of the company needs to plan accordingly. Megatrends are global shifts that play an important role in changing society, its methods, and patterns of doing business. These are the forces that help in shaping business lives and socio-economic norms for the upcoming future (Naisbitt and Naisbitt, 2019). Megatrends cover a wide range of areas from artificial intelligence to climatic changes. These megatrends are beyond the control of the business but as a reflection of the manager of the company. It is within the power of a manager to understand these megatrends and find a proactive approach to consider the impacts they may have on the business.
Megatrends have different impacts on different businesses, but on the other hand, they also bring opportunities and threats to businesses that cannot be neglected. So for making a business successful a manager must be relevant, look out for future opportunities and threats and adapt to changes in the business. For spotting a megatrend business manager can spend time working within the business because it is important to take a look around the business. By checking what is going on in the market, and getting all information about technological advancement, demographic shifts, climatic changes, available resources, etc (Stavytskyy et. al. 2021). The manager should focus on considering how the changing landscape is affecting the business and its stakeholders. Getting close to the customer can provide extra benefits to the company, understanding what are their needs and demands. Also by keeping an eye on emerging markets and gathering information about trends in the market, the manager can enjoy extra opportunities. To attract the best workforce, the manager needs to create a culture that encourages trend spotting and is open to adapting to long-term sustainability.
As a future manager of the company, is required to make better and more flexible policies for business and focus on analyzing the effects and impacts of all the megatrends (Kalaitzi et. al. 2021). Making sure the timely audit of the company's valuable information is related to megatrends. And at last, the manager should make sure that his company should be ready to accept all kinds of changes that are beneficial for business and will provide great profits. Adopting all these changes impacted by megatrends will provide benefits to the company to grow more and cover a larger share of the market by giving tough competition to others in the market.
This essay concludes how megatrends have a great impact on business. Whether the company is dealing in an international market or a local market, megatrends apply to every kind of company in the market. Every company needs to adapt to changes, and by adapting to those changes company can find new opportunities to grow in the market. These changes are required because of megatrends, as it is mentioned in the essay five kinds of megatrends affect the company. Adapting changes according to megatrends will lead the company to steps of growth and development. It is also concluded from this essay that if an e-commerce giant like Amazon also makes changes in business style to match steps with megatrends. Amazon is making strategies like building a warehouse and providing fresh and healthy products with fast delivery services to its customers. Analyzing megatrends gives companies a better view of opportunities and threats, and also provides better strategies to achieve goals.
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