Causes of Business Growth and Failure

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Causes of Business Growth and Failure The topic of business growth and failure is of particular interest given the economic circumstances prevailing today. Due in part the economic system in which the develop markets operate in, occasional panics do occur. These panics periodically cause both market and economic distress as consumers become pessimistic regarding their future. This pessimism causes further contraction in the economy as consumers are reluctant to purchase discretionary goods and services. This phenomenon has and will continue to occur as businesses are subject the uncertain and constantly changing economic environment in which they operate in. To mitigate the damages that will occur, it is prudent to understand the basic causes of business growth and failure. The first cause of business growth is that of consumer demand. This may seem obvious, but in some instances, businesses must create a product to be demanded. Apple, for instance, revolutionized the portable music player industry with the introduction of its IPOD. Initially, very few consumers demanded or even though of a portable music solution to satisfy their entertainment needs. Apple, through its introduction of the product, subsequently "created" demand for its product through its introduction (ohnson, 2006). As such, demand for the product was dramatically increased. This demand spurred further business growth as Apple was able to finance many of its more popular initiatives such as the I
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