Understanding Trends and Fads

Definition of Trends and Fads

• Trends: Long-lasting products, services, or ideas that become significantly popular and remain relevant.
• Fads: Short-lived phenomena that gain popularity rapidly but also fade away quickly.

Types of Trends

• Megatrend: Large-scale patterns that fundamentally reshape and transform societies.
• Microtrend: Focuses on local preferences over global influences, recognizing heightened awareness of consumer choices.

Identifying Trends

• Trends can emerge from previous fads.
• They maintain their presence in the market over the long term.
• Trends resolve specific consumer issues.
• Successful product evolution is a sign of a trend's durability.

Characteristics of Fads

• Limited to specific societal segments.
• Generally trivial with brief lifespans.
• Subject to obsolescence and revival of past styles.

Elements and Characteristics of a Trend

• Duration: Trends persist over extended periods.
• Acceptability: Gained acceptance among a broad audience.
• Cultural Basis: Rooted in cultural contexts.
• Market Fluctuations: Experience temporary rises or falls in popularity.

Differences Between Trends and Fads

• Duration: Trends can last decades; fads are seasonal.
• Industry Impact: Trends affect multiple industries; fads usually affect a single sector.
• Acceptance: Large corporations may wait to identify trends; smaller firms can adapt quickly.
• Consumer Adoption: Trends have widespread acceptance; fads may suffer from lack of substance.
• Reasons for Popularity: Trends arise from collective consumer needs; fads depend on hype and marketing.
• Longevity: Trends have sustainable growth; fads spike and fall rapidly.
• Scope: Trends cater to diverse markets; fads target niche audiences.
• Cultural Connection: Trends are culturally anchored; fads often lack deep societal ties.

Understanding Local Networks

• Emphasizes the significance of networking among humans for social and economic interactions.

Strategic Analysis and Intuitive Thinking

• Strategic Analysis: Research process on business environments to formulate effective strategies.
• Purpose of Strategic Analysis:
  • Evaluate relevant records for strategic formulation.
  • Define internal and external environments for comprehensive analysis.
  • Employ various analytical methods.

Tools for Strategic Analysis

• Value Chain Analysis: Focuses on creating value for customers through organizational operations.
• Involves a systematic approach to understand the flow of value and potential areas for improvement.