Elderly in U.S. Are Projected to Outnumber Children for First Time wall street j

Question

Elderly in U.S. Are Projected to Outnumber Children for First Time wall street journal article

https://www.wsj.com/articles/elderly-in-u-s-are-projected-to-outnumber-its-children-for-first-time-1520967362

Demographics is our destiny both as a nation and as an economy. It is the most reliable and consequential indicator of future growth trends. Always look for accurate information to guide you in your decision making.

How will this affect business especially looking into the 5 forces and business strategies?

Explanation / Answer

Demography play a vital role in building the nation. Nation which has young population will prosper because generally young population drive the economy of the country by participating in economic activities. Old population will have no income hence they don’t participate in economic activities. When a country has more children in its population it means in future that country has more workforce which guarantees higher economic activities.

Porters 5 forces are

Scenario 1: An economy has older people

When economy has older people, bargaining power of supplier increases because number of supplier will be less as working force will be less. Bargaining power of buyer will be less because number of buyers will be more. This results in high pricing of prduct.

Scenario 2: An economy with younger generation

When economy has younger generation, bargaining power of supplier will be less as there will be more workforce which results in large supplier base. Bargaining power of buyer will be more as he will have more power to buy

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.