Over the last 20 years there has been significant social and political change that has helped to shape the world we know today. The business landscape has changed significantly partly due to changes in the business sector as well as a combination of external factors.
In 2007 there was a global financial recession due to banks lending to uncredible organisations and individuals who failed to entirely payback their loans. Because of the scale of loans that had been given out banks were forced to lower interest rates and make rules tighter around taking out or receiving a loan from the bank.
One of the major lasting effects of the global financial crisis was people losing trust in banks, many people lost faith or trust in the banks due to the global crisis and lack of transparency from the bank. The loss of the trust in banks has also led to worse conditions for those looking to store their money in a bank as many banks have fees on accounts or require high deposits in order to be viable.
Although on the other hand there are also a large number of banks who provide incentives as well as offers to new customers to attract them as a result in fall in demand for larger banks. This can be beneficial for many as it potentially means additional extras and benefits to having a bank account.
The Rise Of Online Shopping
An external factor that has had a key part to play in affecting the overall business climate across the world has been the rise of online shopping. Online shopping has had a massive impact on the world overall and has changed the majority of people’s shopping habits around the world. Part of the reason for this is the easiness of online shopping as well as the accessibility and speed in which it can be done.
As a result of tens of millions of shoppers proffering to do their shopping online many high street shops have failed or stopped trading. Demand for online shopping has been so great that Amazon has had to build some its largest warehouses across the UK resulting in mass delivery of online goods across the UK. Amazon as well as Ebay have both attained an extremely large audiences particularly after the demise of major bank such as Northern rock.
Another key reason why online retail has become so popular is the ease of purchase. When shopping online it can be easy to purchase several different types of item without having to make multiple trips to different types of shops.
The Future Of Retail
due to the popularity o of new technologies as well as more options for banking appearing online , retail grow is likely to continue at a fairly fast pace. although having said this there is likely to continue to be a large number of high street closures this is likely to affect smaller areas more as they rely on on staff in shops where as online companies have low numbers of eomploee