Reasons For A Change In An Organisations Product Or Service

Organizations will change the goods or services they provide, more often than others. This can be for many reasons such as social trends, competition, advances in technology and occasionally from accusations from pressure groups. Social trends give a broad indication of the society in that particular country, by analyzing previous economic data. Social trends will have an effect on the services or products that organizations provide, for example as technology advances in the car industry, and the public require a vehicle that is friendlier towards the environment. This will result in the organization needing to make the factory and the car itself more fuel efficient, and release less harmful gasses. All of these things lead to customer satisfaction, which in turn will lead to the customer expecting a better service. Eastgate Ford in Canada, for example, have included in their mission statement that their tradition of customer satisfaction has brought their customers back year after year. However having a high standard of service and product will spark a reaction from rival companies. Competition can also be good for the consumer as it can cause certain companies to begin lowering prices, in order to attract customers. It is important that the companies do not get into a price war, because the automobile market is somewhat an oligopoly, containing a few large competitors who can afford to lower prices more than smaller companies, due to larger profit margins. Therefore if the smaller companies cannot lower prices they will need to find a new product or service to meet consumer needs. If they can find this particular service then the small company could use heavy marketing to promote the USP (unique selling point). In order to find a USP the organization will need to partake in research and development, this can also be used to find more efficient ways to create goods and provide services, and from here it will create new ideas, innovation and give a competitive advantage to them.

Pressure groups are also a cause for the change of a product or service. Pressure groups can exert pressure onto an organization by seeking publicity, creating petitions, holding protests, and in extreme cases criminal activity, if they feel strongly against the actions of the organization. For example on 6th October last year, animal rights extremists dug up the grave of a relative of an employee of a medical research farm.