D4: This course

Running head: EFFECTS OF SOCIAL TRENDS IN HIGH-TECH INDUSTRIES

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EFFECTS OF SOCIAL TRENDS IN HIGH-TECH INDUSTRIES

Effects of Social Trends in High-Tech Industries Louisiana State University of Shreveport Tia McSwain EFFECTS OF SOCIAL TRENDS IN HIGH-TECH INDUSTRIES

Social trends, just like a double-edged sword, has presented its benefits and also threats in the modern-day market. People are becoming are making more inventions that are efficient and more beneficial. All this is attributed to the emerging social trends all over the globe. On the other hand, these trends pose a threat in today’s market. Social trends emerge from the external forces affecting a business.

Political-Legal forces have played a big role in high-tech industries in terms of taxation, results of the election and judicial regulations. The parliament and the judiciary make and implement laws that have a drastic effect on industries. In 2007, the U.S Court passed a law on Clean Air Act which relates to vehicles carbon dioxide emission. This was a big blow to car making industries in the U.S and the world.

When the government and the judiciary enact such rules and regulations, this creates opportunities for other companies. Some regulation may favor big and already existing companies by discouraging new companies from coming up (Haaga & Johnson, 2015). In 2001, the 9/11 event lead to the government enacted laws on air travel safety, airlines that were close to bankruptcy took this chance to ask for aid from the government. This also promoted other forms of transport such as water.

The rise and fall of GDP, inflation, and changes in fuel prices affect the high-tech industries. Economic forces such as high cost of fuel can affect most automobiles industries and this may lead to a ripple effect in the market. The key elements include GDP, Inflation, Interest rates, and exchange rates.

GDP, although related to the world's economies, the rise and fall are different. High inflation rates slow the economic growth, also this for other companies like if prices of fuel rise faster than exploration cost. Low short-term interest rates lower rates on credit cards hence more spending from consumers(Srinivasan, 2016). High rates inhibit plans of a business to expand. The exchange rate, for instance, the dollar, when it is strong, American manufacturers tend to buy from other countries.

Expansion of restaurants is attributed to the increase of women working. This current generation of more educated people has led to tech companies customizing personal computers to meet the need. Increased number of internet user all over the globe makes it easy for companies to advertise(Wright, Khanfar, Harrington, & Kizer, 2014). On the other hand, this can also lead to a sudden fall of a big company if a fault or any problem occurs and is posted through the internet. Boeing Airline suffered after it was realized that Boeing737 had some mechanical problem.

Conclusion

In conclusion, the effect of social trend has its opportunities and threats. By promoting one, there is an undermining factor. Social trends can create opportunities while at the same time it can be an inhibiting factor to one’s company and other companies. Intensive planning and research should be done before selecting which action to take so one can endure maximum profit while incurring small losses

References

Haaga, O., & Johnson, R. W. (2015). Social Security claiming: Trends and business cycle effects. CRR WP, 5.

Srinivasan, R. (2016). Sources, characteristics, and effects of emerging technologies: Research opportunities in innovation. Industrial Marketing Management, 37(6), 633-640.

Wright, E., Khanfar, N. M., Harrington, C., & Kizer, L. E. (2014). The lasting effects of social media trends on advertising. Journal of Business & Economics Research (JBER), 8(11).