Dynamic has meant full of internal movement, rapid changes, evolving.
When applied to the market, dynamic describes the rapid pace at which it is changing and evolving today. Ever shorter development and production cycles are having a massive impact on the dynamics of the market.
Today, companies and their employees have to face constantly changing market factors, such as dynamically evolving purchasing behavior. Consumers are increasingly shopping online, comparing suppliers and their prices and products on the net. Increasingly, both political framework conditions and technological developments are influencing demand behavior and buyer potential in ever shorter cycles.
The dynamic change brings along a strong competitive struggle for the companies. Each company tries to strengthen its own brand and stand out through quality, marketing and fast production. Companies that do not adapt to change lose their competitiveness and are, in the worst case, bought out by larger companies.
Supply bottlenecks increase the dynamics of the markets.
Image: Nikla9416 via Pixaby
The COVID pandemic and the Ukraine war have further exacerbated this dynamic development. Companies are struggling with material shortages, the high prices on the market for energy and raw materials, the shortage of skilled workers. This dynamic development is also noticeable for end consumers: Many consequences, such as price increases, are concentrated on them.
