Understanding Business Revenues (2) – Short- and Long-Term Factors
- AS, A-Level, IB
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 7 Sept 2022
In this video, we spend a few minutes considering some of the short and longer-term factors that influence the growth of revenues for a business.
Seasonal and Cyclical Factors
In many markets, sales are seasonal and so are revenues. Examples?
- Tourism and travel, leisure activities
- Retail and hospitality, seasonal food and drink
Cyclical factors are the macroeconomic variables affecting demand:
- Unemployment levels, job security and real wages
Interest rates on loans
- Consumer confidence / general economic uncertainty
Longer Term Factors Affecting Business Revenues
Changes in the strength of competition within a market:
- Hotels v AirBNB
- Cinemas versus subscription streaming services
Long-term changes to the age structure of a country’s population
- Longer-term shifts in consumer tastes and preferences
- Rise of plant-based foods, protein drinks, low-sugar & low salt food
- Growth in demand for non-alcoholic drinks
Technological changes – creating new demand for innovative products
What are you spending money on now that you didn’t 5-10 years ago?