Expansion and contraction phases in business world
Whenever some new technology is introduced in the world, many business houses grab it and start manufacturing entertainment items, utility items, gadgets, and appliances based on that technology. As the demand for those items surge, companies hire additional man power and expand their operations in that segment. Many companies do extra ordinary sales in the items and get financially benefited by it. That is the expansion phase for many companies.As technology advancements are happening on a continuous basis, some new technologies emerge and old technology become obsolete. Another thing which can also happen is the saturation of the products in the consumer market and there will be few takers for the products which ultimately affects the productivity of companies in respect of those particular items.
The result of all these factors is that the companies which were expanding earlier start contacting their operations and they start firing the people and begin to reduce their employee strength.
Recently, we have seen many news items where it is mentioned that many companies are reducing their man power and cutting the jobs.
Is the business word going through a contraction phase today? What is your observation in this regard? Please share.