SBLC3004: Aging Population Impact on Business Opportunities/Threats

This report examines the impact of the global aging population on businesses, exploring both opportunities and threats. It defines the global aging population, discusses trends and concerns, and identifies five key causes, including high fertility and mortality rates, urbanization, and changing social setups. The report analyzes five specific impacts: self-sufficiency among older generations, increasing use of technology, interest in outdoor recreation, advancements in medical services, and new medications. For each impact, it identifies potential business opportunities, such as grocery stores and apps tailored for the elderly, home-based medical services, and pharmacies catering to older adults, as well as associated threats, including market saturation and the challenges of maintaining service standards. The report concludes with recommendations for addressing these threats to capitalize on the opportunities presented by the rising global aging population.

Running Head: INTRODUCTION TO BUSINESS ENVIRONMENT
Introduction to Business Environment
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Executive Summary
The global aging population appears to be expanding rather than decreasing with every passing
day, presenting both threats as well as opportunities to businesses worldwide. There are plenty of
ways by which businesses can cash in on the spurt in global aging population by providing
services and facilities that are aimed at looking into the needs and requirements of people who
are in the twilight years of their lives, especially people who are all on their own and have no one
to care for them. This report analyzes the impact brought on by the global aging population and
identifies the threats and opportunities associated with each impact. The report concludes that the
global aging population does not necessarily have to be perceived as a threat and makes a
number of recommendations as to how such so called threats can be combated or addressed.

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Table of Contents
1.0. Introduction...........................................................................................................................4
2.0. Macro-Environmental Factors that Impact a Business.........................................................4
3.0. Understanding Market and Market Segmentation................................................................5
4.0. Understanding the Global Aging Population........................................................................5
4.1. Defining the Global Ageing Population............................................................................5
4.2. Trends of Global Ageing Population and Justification.....................................................5
4.3. Concerns associated with Global Ageing Population in the next 10 to 15 years..............6
4.4. Five Causes of Global Aging Population..........................................................................6
4.4.1. High Fertility and Mortality Rates................................................................................6
4.4.2. Characteristics of Different Demographic Generations after World War 2..................7
4.4.3. High Rate of Urbanization............................................................................................7
4.4.4. Low Rate of Immigration..............................................................................................7
4.4.5. Changing Social Setup..................................................................................................7
5.0. Five Impacts of Global Ageing Population and the Opportunities and Threats for
Businesses........................................................................................................................................8
5.1. Self Sufficiency among Older Generations......................................................................8
5.1.1. Opportunity- Grocery Stores for the Elderly.................................................................8
5.1.2. Threat – Many such Grocery Stores..............................................................................8
5.2. Increasing Use of Technological Gadgets by Elderly People...........................................8
5.2.1. Opportunity - Apps for Old People...............................................................................8
5.2.2. Threat – Lack of Sufficient Training.............................................................................9
5.3. Interest in Outdoor Recreational Activities......................................................................9
5.3.1. Opportunity – Parks for the Elderly..............................................................................9
5.3.2. Threat – Difficult to Limit Access only to the Elderly..................................................9
5.4. Advancement in Medical Services....................................................................................9
5.4.1. Opportunity - Home Based Medical Services...............................................................9
5.4.2. Threat – Keeping up the Standard of Home Based Medical Services........................10
5.5. New Medication to Boost the Health of Ageing People.................................................10
5.5.1. Opportunity - Pharmacies for the Elderly...................................................................10

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5.5.2. Threat – Many Medical Stores for the Elderly............................................................10
6.0. Conclusion..........................................................................................................................10
7.0. Recommendations for Addressing Threats to the Business Opportunities associated with
rising Global Ageing Population...................................................................................................12
References......................................................................................................................................14

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1.0. Introduction
The objective of this report is to study the impact of global aging population, both
positive as well as negative and the various opportunities and threats that are associated with
such impact, which may be utilized by businesses to provide services and facilities to a
substantially large target market.
The specific purpose of this report is to understand the different threats and
opportunities brought on by the impact of an ever growing global aging population and the
manner in which such threats can be combated and opportunities well used to earn profit through
the provision of facilities and services that give comfort and assistance to people in their old age.
The area of coverage for this report is the global aging population in general. The tools
for analysis and investigation that have been used to write this report include the extensive
survey and in depth analysis of secondary literature on the subject of global aging population.
2.0. Macro-Environmental Factors that Impact a Business
There are a number of macro-environmental factors that impact the manner in which a
business operates. These are the socio-economic environment in which the business carries out
its operations, specifically the social fabric and the economic setup of the country, the legal
mechanisms that are in place to ensure that the business is able to conduct its activities in a
secure and well protected environment, the political system and modes of governance that are
currently operational in a country, and the immediate natural environment (Tung 2014).

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3.0. Understanding Market and Market Segmentation
The market is the place in which the buying and exchange of commodities, goods and
services takes place. Market segmentation refers to the process by which a broad business or
market comprising of potential and existing customers is divided into various sub groups of
consumers, known as segments. The four bases of market segmentation are demographic
segmentation, psychographic segmentation, geographic segmentation and behavioral
segmentation. In other words, a market is divided on the basis of the behavior of consumers,
their geographic location, their mental makeup and based on how many they are in number, and
whether or not they form a part of the majority or minority of a country’s population. Once the
market segmentation is carried out, the target market is defined, based on exactly the type of
consumers or customers that a specific business wants to reach out to in order to sell its goods
and services, and which such goods or services or product is positioned in the target market.
Positioning refers to the manner by which a product is designed and marketed so as to stand out
from related products in the same market.
4.0. Understanding the Global Aging Population
4.1. Defining the Global Ageing Population
Population ageing refers to the increase in median age of a country’s or region’s
population due to factors such as rising life expectancy and the steady decline in fertility rates
(Lee and Collins 2015).
4.2. Trends of Global Ageing Population and Justification

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The trends in global ageing population seem to indicate that the world ‘s population will
reach 1.5 billion by the year of 2030, and that by the decade of the 2050’s, the figure will have
crossed 2.1 billion. This seems justified, given the fact that more and more people these days are
opting out of having children and life expectancy is far better now than it ever was before.
4.3. Concerns associated with Global Ageing Population in the next 10 to 15
years
Some of the concerns associated with global aging population in the next ten to fifteen
years is the rising cost of healthcare and reduced availability of job opportunities for younger
people. If life expectancy is good and the older population is able to be fit and fine and in a
position to render their best professionally, even in their post retirement years, this presents a
threat for younger populations in a country who are on the lookout for jobs, and who need to
support themselves and their dependents. The rising cost of health care is particularly a very big
concern associated with the global aging population. The more old people there are in a country,
the more expensive it will be for the country’s administration as medical services and benefits
shall have to be made available for their wellbeing and comfort.
4.4. Five Causes of Global Aging Population
4.4.1. High Fertility and Mortality Rates
One of the major causes of global aging population is the high fertility and mortality rates
prevalent in today’s day and age. Due to the advancements that are made in the domain of
medical technology, people are able to take care of themselves better and are consequently able
to live longer and healthier lives. More and more people are becoming conscious these days
about the importance of healthy living, and while following a balanced and nutritious diet is so

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crucial, given that it provides the body with the right amount of vitamins and minerals and other
nutrients needed for it to grow, develop and remain in good shape.
4.4.2. Characteristics of Different Demographic Generations after
World War 2
A substantive decrease can be witnessed in the size of the conventional modern day
family following the period after World War 2. People often tend to delay marriage these days
because they prefer to have a career instead, and children tend to migrate to other countries to
study and work, settling down there and focusing on independent living as successful
professionals. The rise in the cost of living has also contributed to the decline in family size
today, as the larger the family size is, the more will be the number of mouths to feed.
4.4.3. High Rate of Urbanization
Due to higher rates of urbanization, people have better access to healthcare services these
days. People are able to access diagnostic and other healthcare services that enable them to lead
healthy lives for the most part of their existence.
4.4.4. Low Rate of Immigration
The low rate of immigration is also something that has contributed to the global ageing
population. Many people are staying back in their own countries these days instead of going
away to another country for a career, in order to look after their parents who are getting old.
4.4.5. Changing Social Setup

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Due to the preoccupation with having a career, people are less interested in marriage and
even less interested in having children of their own. Consequently, the number of old and middle
aged people today is far more than what it used to be even a generation ago.
5.0. Five Impacts of Global Ageing Population and the Opportunities and
Threats for Businesses
5.1. Self Sufficiency among Older Generations
5.1.1. Opportunity- Grocery Stores for the Elderly
Profit based organizations or businesses can focus their efforts in develop grocery stores
and stores that deal in essential goods that are meant specifically for older people. Older people
usually find it difficult to go shopping at supermarkets and departmental stores that are also
visited by younger generations, since they like to take their time in picking out products and do
not want to stand for long hours in a queue at the payment counter. (Ancoli-Israel 2009).
5.1.2. Threat – Many such Grocery Stores
While opening a grocery store for the elderly is definitely a good idea, there will be many
business heads that can envisage the same opportunity, leading to the possible saturation in the
growth and development of such stores.
5.2. Increasing Use of Technological Gadgets by Elderly People
5.2.1. Opportunity - Apps for Old People
Businesses can consider developing specific types of technology, like specific apps, that
old people can use in order to get things delivered to their doorstep instead of them having to
step out of the house. Such apps should be those that ought to be made available for use by

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senior citizens only and should be the types of apps that senior citizens can use in order to have
newspapers and grocery products delivered to them at home, as well as medicine too. (Chand
and Tung 2014).
5.2.2. Threat – Lack of Sufficient Training
Prior to launching apps, care must be taken to see how many elderly people can use such
apps for their benefit. Some may have to be trained extensively before they can start using the
apps on their own entirely.
5.3. Interest in Outdoor Recreational Activities
5.3.1. Opportunity – Parks for the Elderly
Businesses can concentrate on creating parks and areas in localities that are specifically
meant for use by older people. It is unfair to restrict older people to using parks that are also
inhabited by younger populations, as such places tend to be quite noisy and crowded, with elder
people seldom getting the opportunity to relax and to unwind. (Chand and Jaeger 2016).
5.3.2. Threat – Difficult to Limit Access only to the Elderly
The creation of outdoor recreation facilities like parks and gardens for an ageing
population only can be a challenge. Soon other younger people and their children may also want
to avail access to such parks, and it could be more rewarding financially too for a business to
increase access to young and old alike.
5.4. Advancement in Medical Services
5.4.1. Opportunity - Home Based Medical Services
Profit based businesses can focus on offering home based medical services for the elderly
so that such people do not have to visit a hospital or a clinic in order to get treated. Home care is
usually perceived as the best care and efforts should therefore be made by profit oriented

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enterprises to provide home care medical facilities that include home based diagnostic services,
medication and nursing services among others. (Davies and James 2016).
5.4.2. Threat – Keeping up the Standard of Home Based Medical
Services
While home based medical services can definitely be made available for the convenience
of the elderly, care must be taken to see that such standards are at par with those services
provided within a hospital setup. Else, the business may not have a long life.
5.5. New Medication to Boost the Health of Ageing People
5.5.1. Opportunity - Pharmacies for the Elderly
Profit organizations can develop or set up medical stores or pharmacies in localities that
offer special discounts and rebates on the price of medicines, and where the sale of medicines are
made available to older people only. It is unfair for an elderly person to come back home without
buying any medicine because the queue at the medical store was too long or because the store
officials could not give them time because they were tending to other customers (Dobbs et al.
2014).
5.5.2. Threat – Many Medical Stores for the Elderly
Many businesses may have the idea of starting medical stores or pharmacies for elderly
people, making it tough for people to choose between pharmacies, and resulting in gains for one
pharmacy and losses for another.
6.0. Conclusion
Thus, there are quite a few important impacts that are induced by the rise in the global
ageing population, which are accompanied by significant opportunities as well as threats that
need to be addressed.

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Impact Cause Opportunity Threat
Self Sufficiency among
the Elderly
Desire to live a healthy
and well balanced life
by senior citizens
Development of grocery
stores specifically for
the elderly
Combating the existence
of many such grocery
stores
Technological
Advancement among
elderly
Desire to catch up with
youngsters and
communicate as well as
they do
Development of Apps
for Elderly Assistance
Not finding too many
customers who are
trained well enough to
use such apps
Interest in outdoor
recreational activities
Desire for healthy living Creation of parks and
gardens for the elderly
Access cannot be
limited to only the
elderly for too long
Advancement in
Medical Services
More and more old
people want to visit
doctors regularly to
remain in good health
throughout the year
Offering home based
medical services
Maintaining the
standard of such
services could be hard
to do over the long term,
especially when
competing with
hospitals and clinics

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New medication to
boost the health of
ageing people
Desire and need for
ageing people to live a
healthy life
Building pharmacies for
the elderly
There could be many
such similar, related or
competing pharmacies
that cater to elderly
people exclusively.
The threats need to be mitigated at all costs, by businesses looking to expand and profit
from the expansion in the global ageing population today.
7.0. Recommendations for Addressing Threats to the Business
Opportunities associated with rising Global Ageing Population
 When creating grocery stores specifically for the elderly, efforts can be made to make
grocery store services available to other sections of the population too, but at specific
hours of the day only, in order for the elderly to actually benefit from the existence of
such stores (Murdock 2018).
 Elderly people need to be trained well enough to use apps meant for their benefit.
Helping elderly to become technology savvy by offering tutorials for the same is
something that needs to precede the launch of fancy technology for elderly assistance
in the market. (Lee and Coughlin 2015)
 When it comes to creating parks and gardens for the elderly, the same initiative needs
to be taken as in the case of the grocery stores, by offering access to such parks to
other segments of the population, at certain times of the day only. (Tung 2016).

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 The home based medical services provided need to be evaluated and monitored on a
regular basis to ensure these are at par with services provided in hospitals and clinics
(Acs et al. 2015).
 Pharmacies for the elderly need to stand out from related medical stores by offering a
wide range of deals and discounts and keeping rare and important medication always
available at hand, for purchase (Balandina et al. 2015).

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