Business Report

Name:
Institution

Table of Contents
Table of Figures...............................................................................................................................3
Introduction......................................................................................................................................4
Definition of terms...........................................................................................................................5
Business Theory...............................................................................................................................6
Current trends and opportunities.....................................................................................................6
Conclusion and Recommendations..................................................................................................8
References........................................................................................................................................9
APPENDIX 1 : Top 20 online bought products in Australia........................................................10
APPENDIX 2 : Internet Confidence Levels in Australia Among Teenagers.................................11
APPENDIX 3: Online Platforms used for marketing in Australia................................................12

Table of Figures
Figure 1 Top 20 online Bought Products in Australia.....................................................................8
Figure 2Confidence Levels on the Internet in Teens.......................................................................9
Figure 3 Top Online platforms used by marketers........................................................................10

Introduction
According to Australian Media and Communications authority from a research
conducted in 2009 the number of hours spent by teenagers on the internet was approximately 150
minutes according to the survey. The world is dynamically changing and only those willing to
change can tag along. The younger generation is quick to realize that we are living in a dynamic
world and are ready to take the chances no matter what the outcomes are. Australia teenagers are
probably the most affected group of teenagers experiencing the world of online shopping. The
report provided explains that 82% of the Australian teenagers has access to the internet either at
home or at school and has access to a smart device (Australian Media and Communications
Authority, 2014) . Social media is rumored to be the number one promoter of online shopping in
Australia. Although the teens lack the buying power due to the lack of stable incomes it is
expected that there will be a shift in the market structure as the teenagers graduate from being
dependants. The above report involves statistics provided by books and online trusted sources in
relation to teens and their online shopping trends. This business report aims to demonstrate that
for continued success most companies in Australia will have to shift their focus to the online
market.

Definition of terms
ACMA Australian Communications and Media Authority
Teens Teenagers

Business Theory
With a downward trend in most businesses that were once profit makers
plunging into debts and losses, it is without the doubt that the business theory is the most
important aspect of any business. The business theory sums up all a companys existence
strategies that mainly deal with the target markets. The business theory assists in identifying
potential competitors and customers to the form and also analyzing their behavior and values.
(Peter F. Drucker, 2016)
The theory of business for the online firms is based on the fact that the teens are
tomorrows primary market who will be occupying the working class portion of the market. The
online businesses in Australia operate on an assumption that the teens transacting online at this
period will remain their loyal customers even in the near future. The businesses hold beliefs that
technology growth in Australia is the biggest asset available in the corporate world both
regarding advertisement and market. The internet is the major communication method between
the customers and the business enterprises.
Current trends and opportunities
The current market trends in Australia bring to light that 1 in 40 to 50 persons carry out
online shopping activities in a given average of one month. The current trends however indicate
low levels of trust to buy expensive goods over the online platform. From the figure 1 below
based on the top 20 online sold products it is evident that online shopping is most famous for
Tickets and movies. A leading 6.5% of the total population engages in buying of movie tickets
which is closely followed by a trailing 6.4% of population which is heavily invested in purchase
of travel tickets. The least demanded products in online shopping from the data provided are

home wares and health products each attracting a 2% of purchase from the online shoppers. (Roy
Morgan Research, 2015)
Most businesses in Australia are however lagging behind and have not fully appreciated
the power and influence that online shopping has. The businesses use basic websites for
promotion of their products and rely heavily on advertisements to promote their brand. The
businesses have a well-considered theory of business and they consider that migrating to become
online businesses puts them at risk of losing customers.
Australias aging population will have a major effect on the general trading economy of
the country. The change will be due to the sudden shift that will take place as more and more of
the working population will be more reliant on online shopping due to convenience and variety
to choose from. From the Australian trend indicated by the expansion of both internet and
technology business enterprises which will not make a bold move to target the online customers
will have minimal and no survival chances at all.
The drop of the Australian dollar will lead to an increase in the prices of products that are
sold by business enterprises, and a significant low demand of products will be experienced. The
rise of the Australian dollar over other currencies will, however, lead to a drop in prices of
products in the market and this will lead to increased demand.
As a result of the digital trends witnessed in Australia whereby the shifts in online
platforms are growing more popular by the day illustrated by figure 3 below. The rising
confidence levels by the teenage users is the greatest strategy that online selling business
enterprises rely on for ensured survival in the market (figure 2). The digital focus is mainly
significant because of the sustained low fertility and declining life expectancy with the greatest

population made up of people aged 50-54 years. (Australian Government, 2014). Businesses will
be obligated to change their organizational structures including their human resource and
marketing strategies. Sales and marketing will be the most important department in most
businesses and to achieve this more online advertisements will be made. The business model will
evaluate the current trend of the United States where online shopping is more popular and has
attracted the confidence of the countrys customers.
Conclusion and Recommendations
As a result of the inevitable demographic and economic changes, Australian businesses
should establish online platforms and attract the digital portion of the market. This group of the
population though not possessing the driving force behind the Australian economy (Australian
Media and Communications Authority, 2014) they are the greatest assets that the enterprises can
pose for the futures inevitable fate.

References
Australian Government, 2014. Australian Demographic Statistics. [Online]
Available at: www.abs.gov.au/austats/abs@.nsf/0/1CD2B1952AFC5E7ACA257298000F2E76?
OpenDocument
[Accessed 12 August 2016].
Australian Media and Communications Authority, 2014. Aussie Teens Online | ACMA. [Online]
Available at: http://www.acma.gov.au/theACMA/engage-blogs/engage-blogs/Researchsnapshots/Aussie-teens-online
[Accessed 12 August 2016].
Peter F. Drucker, 2016. Theory Of Business - Harvard Business Law. [Online]
Available at: https://hbr.org/1994/09/the-theory-of-the-business
[Accessed 12 August 2016].
Roy Morgan Research, 2015. The state of Australias $37.8b online shopping landscape.
[Online]
Available at: http://www.roymorgan.com/findings/6591-online-shopping-in-australia-june-2015201512012314
[Accessed 12 August 2016].

APPENDIX 1 : Top 20 online bought products in Australia

Figure 1 Top 20 online Bought Products in Australia

Source (Roy Morgan Research, 2015)

APPENDIX 2 : Internet Confidence Levels in Australia Among Teenagers

Figure 2Confidence Levels on the Internet in Teens

Source (Australian Media and Communications Authority, 2014)

APPENDIX 3: Online Platforms used for marketing in Australia

Figure 3 Top Online platforms used by marketers

Source (Australian Media and Communications Authority, 2014)