Sunday, May 29, 2016

Next Generation & External Influence


Next Generation & External Influence

Individual empowerment is a dominant market force. The generation of Millennials as the most powerful class in the coming decade will force companies to reshape their competitive market analysis. Movement of people to urban areas impacts local economies at a micro level and migration of populations to developed countries creates shift in the geo-political environment. These forces create new markets and introduce new buyer behavior[1]. On one end, this generation is empowered with more disposable income better access to technology on the other side we have migrant families trying to find a living and establish their social footing in a new country. The migration statistics into Europe since the start of 2016 tell the truth in numbers.[2]

In the coming years income inequalities will be on the rise. Companies partly drive this trend by investing the technology making mid-level workforce redundant and paying top dollar for the knowledge worker. The top internet companies in the world – Google or Facebook did not exist in their current form ten years ago and this generation will evolve continuously but their beliefs, their buy, spend and usage patterns, their brand loyalty may all be getting shaped right now.

Companies will need to start treating this as a compelling external factor and respond by trying to re-shape the thinking of this generation. This breed of empowered individuals are starting to influence products, services, government policies, regulations and collectively create a wedge in the definition of a conventional consumer. Social media influence on the geo-political environment and competitive markets is here to stay. More free access to information translates to more knowledge in the hands of the individual not just from a buyer/ consumer standpoint but also as an opportunity to shape the future trends on external forces influencing company strategies.

 

 



MILLENNIALS – The Council of Economic Advisers – Page 5, Page 42
[2] http://www.bbc.com/news/world-europe-34131911 - Migrant crisis: Migration to Europe explained in seven charts

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