The second of the macro trends is concerned with drive for reduced development time for new applications, driven by competitive forces and changing business models.
Organisations in the 21st Century face a changing consumer landscape
and a highly competitive
market. With the evolution of the internet the set up costs of companies has massively reduced, whilst making use of existing business models such as Ebay Marketplace and Amazons Marketplace companies can challenge existing companies markets within hours not weeks or years. Social media sites will be seen as a new potential growth area within this arena.
Within the IT industry sites such as comparethemarket.com and moneysupermarket.com has resulted in numerous developments. A key change is that it takes less time to search many brokers for such things as car insurance or holidays. This has resulted in consumers becoming more price conscious. The net result is that companies have become more focused on price whilst brand loyalty has become diminished although not completely removed as an influence. A quick search on any of these two compare sites for holiday insurance will demonstrate the mass of basic insurance companies all competing on price, its the default sort order for the results search. A review of the top spending advertisers would show that the compare search sites spend more on advertising than the insurers they host on their sites.
This short term cost concious supplier has led to basic often reused web site designs becoming more popular as it is probably the one and only time the customer will visit the site unless they have competitive pricing for any length of time. This can be further demonstrated in the growth of internet domains, as shown below.
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