The Enigmatic Market: Business and Startups
Introduction
In the history, the oldest business ever registered was the company named ‘Kongo Gumi’ ( construction company ) in 578 A.D. in Japan. Kongo Gumi continues to operate as subsidiary of the Takamatsu Construction Group. Ever since Millions of companies registered , Millions of business operated earning billions-trillions-quadrillions of money. And in every stage the market gets evolved and gets more complexed. Since, when the first company registered many events occurred in the history which directly or indirectly affect the natural state of the market. Due to the dependency factor, Market is consider to be the vulnerable entity in the business. As market can be easily manipulated, shaped and even controlled by bringing small change in:
i) Economic & Social factors,
ii) Government policies,
iii) Supply and Demand,
iv) Technology,
v) Customers Psychology,
vi) Environments and more.
Recently, Covid-19 the catastrophic pandemic has triggered the largest global economic crisis in more than a century , which is consider to be the negative side of Covid-19. But in other hand it has made positive effect on the digital economy by promoting the digital industries and digital technologies (the internet , big data , artificial intelligence ) though there is imbalance in the post covid era, but also digital economy is mitigating the economic crises,
How interesting , isn’t it? The same incident has positive as well as negative impact towards the world economy . Really, we can’t say the real color of the Market . The close we can go is to predict the color of the chameleon (Market) . Market is vast to understand , it is just like the mystery of the Universe.
Types of Market
According to the Doug Kessler , co-founder and creative director of London -based B2B content marketing agency, “Velocity Partner”, the market can be categorized into five different sub-markets.
- Business Markets: Business markets involve business-to-business sells. Here the products are not sold to the individual consumers but rather sold to the another business.
- Consumer Markets: Consumer markets are the last stage of the sell where business sells their product to the final consumer.
- Global Markets: When the products are sold across the country then it is said that the products are sold in the global market.
- Government Markets: A government market is the market where the buyers are the federal, state and municipal governments. Here vendors must go through Government marketing and procurement (GMP) to obtain the government as their customer.
- Institutional Markets: Institutional markets involve buying goods and services to use within their own production of goods and services. This includes Healthcare, Education , Hospitals etc.
These categorization of market, somehow simplified the enigma of the market but there is always more to learn about the dimensions of it. Learning , observing and realizing about the market is always the unfinished job.
Business and Startups
Business and Startups , both entities aimed at generating profit , but they differ significantly in their nature , scale and approach.
They both acquire different dimension of markets .
The Conundrum in Market that comes during building the Business and the Startups
The origins of the market are uncertain but substantial documentary evidence survive from the eleventh century onward. There has been no systematic literature review on market evolution , since the article “The Origin and Development of Markets”, by Mark Casson and John S. Lee (Harvard Business School) attempts to fill the gap.
The article summarizes the five hypothesis in the development of the Market and they are:
- The development of markets was slow, complex, and not always linear.
- Institutional arrangements, including formal and informal constraints, shaped market development.
- Large-scale consumers have always been a major factor in the growth of markets, although the nature of these consumers has changed over time.
- Competition between market centers, driven by changes in demand and technological advances in transport and communications, leads to the restructuring of marketing networks.
- Informal markets have always played a prominent role in trade.
Knowing the Development of the market is the most enigmatic thing, it creates confusion to the reader.
Establishing business and running it , is within a huge task. Business is just like the baby , we need to look-after it in every interval of time. Furthermore , we have to nurture it. Running Business or Startups requires intense hard work and vast knowledge . There are so many components required to run the business or startups that need to be studied before, during or post period. One of which is Market.
Business and Startups acquire different types of market:
Business are established with the stable business model , always operated in the established markets.
Whereas Startups are newly founded ventures with unique business models, operated at disrupting existing markets or creating entirely new ones.
As the market is the vague and the vast topic to be discussed upon , learning , observing and analyzing it requires wide range of knowledge. Going through the books , learning theories only with no practice can contradict those theories. With the new business model , new market is being formed. Since 578 A.D. there have been practiced of many new models of business, as the models are developed to satisfy the consumers with the products or services being provided.
As the time passes, different ages came into existence : Agricultural age, Industrial age, Modern age ( Age of technology). Different age have different characteristics of market. The market were formed in order to fulfill the needs required within those particular era. But this is the Modern age i.e. The age of Technology , this age is also known to be the age Time. Time is consider to be the valuable assets in this age. Here market needs and wants are changing in fraction of seconds. Turnover of the market can be seen in trillions. Thus, where the market is changing in fraction of second, there is always confusion to run the business or startups. Till now so many theories have been developed, that they contradict each other and arises the confusion.
So many ways are found out, which can harm the integrity of the business or startups , which makes the Legal Process confused.
Little knowledge about market and its behaviour also creates confusion and makes the market more mysterious in nature.
Understanding the Enigmatic Nature of Market and Solving them
The unfinished job can partially be done , if we able to clarify the conundrum of the market. And clearing the enigmatic nature of the market is a formidable task, as it involves unraveling of complex dynamics influenced by a multitude of factors. These mentioned approaches helps to understand and navigate through the market.
- Education and Research: Deepening the understanding of economics , finance and market dynamics through education and research can provide valuable insights into how markets operate. Economic theories, Financial Instruments, Market Trends and Historical precedents.
- Data Analysis: Utilizing the data analytics and statistical methods to analyze market data and identifying the patterns , correlations and trends. It helps to get valuable insights into market and makes more informed about investment decision.
- Risk Management: Risk Management strategies should be implemented to protect capital and mitigating the downside risk.
- Continuous Monitoring: Market is changing in every second , so keeping eye and stay informed about market developments, news events, latest technologies , policies made and knowledge about consumers sentiments is the foremost task to know the market nature.
- Seeking Professional Advice : Seeking guidance from financial advisors ,investment professionals before starting any business or startups is beneficiary. Their insights and expertise can help us to make more informed decision.
While these approaches can help to improve the understanding of the market and reduce the enigmatic nature, it is important to recognize that uncertainty and volatility are inherent features of the market.
