Demographic Enviroment

DEMOGRAPHIC ENVIROMENT

Submited by-:Raushan kuma

INTRODUCTION • Demographic factors such as size of the population, population growth rates, age composition, ethnic composition, density of population, rural-urban distribution, family size, nature of the family, income levels etc • Have very significant implications for business.

• The size of the population is an important determinant of demand for many products. • Poor countries with small population are generally not attractive for business. however, even such countries may hold out opportunities for some companies. • Advanced countries, particularly with large population, are generally attractive markets. The major part of the international trade and foreign investments naturally take

• There has been an explosive growth of the global population, particularly in the developing countries. The universal trend now, however, is fall in birth rates, although the total population is still growing at over one percent annually. • In developed countries the fall in the birth rate is so steep that the population size would shrink drastically. Because of the declining birth rate, population is already peaking in a number of countries. The colapse of population size has

• The declining birth rate poses a problem for many business. Because of the decline in the birth rates and the consequent fall in the size of the baby population. The market for the baby products has shrunk. This has prompted some companies, such as Johnson & Johnson ,to reposition their products ( originally introduced as baby products) and to pay more importance to international business. • The declining birth rate has, however, been a boon to certain industries. For example, intustries such as hotels, airlines & restuarants have benefited from the fact that young childless couples have more time and income for travel and dining out. Small families have also similar advantages when compared with large families.