A developing business may be affected by changes in the economic climate. A product selling well in a strong economy such as holidays abroad may see a decline in sales during a recession. Alternatively some products do better in tougher economic conditions, for example Airbnb became successful as a result of people having less disposable income.

Trends can be analysed to make predictions on future demand. Developing businesses can use their internal sales data to see which of their products are growing in sales and which are levelling off or declining. This may lead to strategies to increase sales or to withdraw from the market. External data such as industry trends can be analysed to make decisions on new products to add to a range which may be popular.

Competition may force diversification for survival. As a business achieves growth in sales of their products or services, the market may become appealing to more businesses to enter. In order to remain competitive, a business may need to make adaptations to their products to make them stand out from competition or introduce a wider range.

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