Introduction
An industry is a group of manufacturers who produce and sell a common product. Products produced have the same consumption purpose but differ on the ingredients and packaging. In addition, products from a certain company are inscribed with company logos and coded with batch numbers. Products from the same industry act as substitutes to each other. Therefore, producers sell them at close-range prices to counter the competitive force of rival producers. Consumers are rational in their consumption behavior and, therefore, will select the best product being sold at an affordable price. (Parker, 2005). Different industries operate under a given set of regulations that are established based on the obligations in each industry. Most producers converge to form an organization that acts as a link between them and the national government. In addition, the organization links with other manufacturers across the globe to establish new mechanisms of production in a bid to enhance effectiveness and efficiency in the industry.
Consumer Electronics and Airline industries
Every industry has its origin. Evolution of any started with the establishment of a single firm that expanded its market dominance through establishment of subsidiaries .More firms realized of an opportunity in the market and thus established other firms to counter the parent company. This evolution led to the formation of an industry. As a result of competition in the industry, firms adopted innovative techniques and produced higher quality products than their competitors. This strategy led to increased market share and internal economies of scale. Moreover, firms established subsidiary outlets locally, regionally and in the international markets. (Parker, 2005). This strategy of inter-linkage of firms with their counterparts across the globe is called globalization. Globalization is an expansive term that refers to the integration of products, ideas and social aspects among citizens across the globe. It is worth noting that globalization is the core driving for economic development in the world.
Consumer electronics
Evolution of consumer electronics dates back in the 2oth century when generation of electricity paved way for innovation in the electronics. The first consumer electronic was gramophones devices that were used to record and reproduce sound recordings. Radio receivers and televisions followed the innovation trend and the industry continued to expand every day. In the early 1940s, the first digital computer was invented. The invention was a milestone in the consumer electronic industry and was, therefore, presumed to revolutionize the manner in which documents were produced and the way office data would be preserved for future reference. Ever since, the industry has grown tremendously and its capital base is estimated to be more than $150million. Some of the consumer electronics that have been produced in the market include telephones, digital cameras, digital televisions, MP3 players, mobile phones, automotive electronics and many others. (Consumer Electronics Association,2000).
Market trends in consumer electronics industry
Consumer electronics industry has grown tremendously from the analogue status to a digital stage. Current electronic equipments are an advancement of the initial evolution of products .For instance, communication has been made easy with the invention of mobile phones that are portable thus enhancing communication in every part of the world. (Fink, 2000). In addition, the automotive industry has advanced in invention of electric trains thus enhancing quick and convenient transport industry.
Among the trending innovations in the electronic industry are divided into three major categories that include In-home entertainment, media and data convergence and the communication industry. For instance, innovation has led to the production of High Definition Television sets that have replaced analogue televisions. Quality of programming has improved and also enabled increased variety of channels for viewing. Moreover, consumer taste has diverted to use of hand-held devices that are installed with broadband wireless connectivity thus enhancing social networking among the youths. For example, Samsung Company launched the largest flat-screen Television set that measure 110 inches. It is an increasing trend in the digital market that may influence other rival companies such as LG and Sony to follow suit.
Competition is the major Potter’s market forces that influence the innovative growth of a company or an industry. Consumers benefit immensely by obtaining varieties of products that suit their tastes and preferences.
Relevance to understanding of the business industry
Tracing the evolution of the industry and the trending products in the electronics industry enlightens students and prospective employees on the market gap in the market. In addition, the study, acts as a pre-feasibility study by an entrepreneur. It forms the basis of identifying a business opportunity that may yield in a different high quality brand of a product. For instance, Samsung studied the electronics market and realized that Television viewers were limited only to programs subscribed in a certain region. Currently, Samsung Televisions is designed to feature, Universal cables that enable transfer of music and photos from other portable devices to the television. (Michell, 2010). Additionally, viewers can use the plasma televisions as desktops to enhance social networking among the youths. Therefore, it is imperative for an entrepreneur or a student to conduct an in-depth analysis of the industry with intent to realize the market gap and the performance of trending products. Such study will form a platform for innovation.
Airline industry
Airline industry is an expansive industry that deals with transport of passengers and cargo. Airline companies purchase aircrafts from manufacturers while others partially lease aircrafts form manufacturers with the intention to purchase them in the future and gain full ownership. Most airlines specialize in both cargo and passengers transport while others specializes in either cargo or people transport. Airlines operate on within domestic, regional, Inter-continental or in the international geographic scope. The first airline was invented in 17th December 1903 with the flight of Wright brothers’ airlines. Their plane combined both power and control capabilities, an advancement from propelling used gliders. (Morrison & Winston, 2001). When the First World War ceased, innovation of planes had advanced and thus was reliable for transport of people and large cargo. Charles Lindberg is believed to be the first engineer to manufacture an aircraft that was capable of carrying passengers in the early years of 1927.In 1950; Boeing-707 jets were developed and have since been advanced to carry passengers and flights. The largest Boeing aircraft carries a capacity of between 400 and 500 passengers. (Morrison & Winston, 2001).
Market trends in the airline industry
The airline industry was among the most adversely affected sectors during the financial crisis in2008 and 2009.Most airlines grounded their airplanes and retrenched part of the workforce. Despite those challenges, the industry has continued to grow tremendously with increased number of airlines every year. In addition, airlines have advanced from the domestic market to the international market. This trend of globalization has been necessitated by the rise in demand of international travel and reduced cost of airfare. However, increased fuel price, terrorism and fluctuating Forex market have been the most impending factors in the industry’s development. Another market trend is business outsourcing. (Conybeare, 2004:78). Business outsourcing entails hiring of an external party to perform partial functions of the airlines at an affordable fee. The strategy has indicated positive results by saving on operation costs. In addition, the airline global penetration has influenced the adoption of technological techniques to tap customers. Most airlines have established on-line bookings and E-tickets in a bid to tap a wide market scope. These trends characterize the global perspective of the industry.
Relevance to understanding of the business industry
Every business activity is presumed as a going concern that is projected to grow and expand to other potential markets in the near future. (Boulton, & Turner, 2005). Understanding the history and the trends in the airline industry is essential for students who have aspirations to work in the airline industry. Students are able to understand the innovative trend that the industry has followed and the policies and regulations that govern the industry. In addition, studying history and market trends of the airline industry is essential for entrepreneurs who would wish to invest in the commercial flights. Entrepreneurs are required to conduct a feasibility study of the potential market gap before investing their capital.
Conclusion
Understanding the historical perspective and the market trends of different industries are essential I creating an enabling environment for entrepreneurs or investors who have little or no knowledge of the industry. Reviewing the market trends and performance of the industry creates a platform for realizing a market gap that an entrepreneur could seal by investing the necessary resources. Additionally, the global trend of a company helps in understanding the policies that govern a certain industry. For instance, history and evolution of consumer electronics and airlines industry are the bases for inculcating passion for the career development of an individual. The students are able to understand how the product was invented and the extent to which the product has been advanced up to date. The students could engage in research of electronic and airline products with an aim to enhance innovation.
References
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