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    Business Strategies and Technological Forces_

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    Dinesh Parate

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    Business Strategies and Technological Forces_

    Uploaded by

    Dinesh Parate
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    1 views2 pages

    Business Strategies and Technological Forces_

    Uploaded by

    Dinesh Parate

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    1

    Business Strategies and Technological Forces

    Developing strategies is an important job that managers must do. This week, we learned

    about two models that managers are checking: Michael Porter’s Five Forces model and Jay

    Barney’s VRIO model. In applying these models, managers can detect the opportunities and

    threats in the external environment and the strengths and weaknesses that firms have. We

    considered the role played by technological innovation in determining how industries evolve and

    also looked at different models for the evolution of technology and predicting the path of

    technological progress (Karakowsky & Guriel, 2015).

    We identified the key stages and key events in an industry’s evolution from introduction

    to growth, maturity, and decline. Sales usually start slowly with new patented products in the

    introductory phase. During growth, sales increase rapidly, and this stage requires substantial

    marketing and investment expenditure. Maturity is characterized by stagnant growth and a flat

    life-cycle curve. Growth may be followed by an expansion phase, sometimes called aging or the

    stable maturity stage. If an industry fails to innovate, then it faces a decline, resulting in reduced

    sales. Throughout the cycle, companies can benefit from economies of scale, leading to increased

    profits through cost reductions per unit (Industry Life Cycle, 2021).

    We often hear that technological advancements always have the effect of massive job

    displacement, but at the end of the day, the economy expands as new jobs are created. However,

    that’s a little too convenient way of thinking about the effects of AI and automation on jobs

    today (Rotman, 2020). To find out what innovations are coming and what’s likely to impact the

    business sphere, the most exciting implications for businesses in the coming year are 5G

    networks, mainstream blockchain apps, more AI-enabled platforms for automated work, machine
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    learning for customer service, 3D printing, new security measures, augmented reality, more AI

    solutions for small- to medium-sized businesses, wearable technology, and optimized

    communication (Gerber, 2018).

    In summary, strategic models are used by managers to identify opportunities and threats

    to the business, as well as its strengths and weaknesses. For example, Michael Porter’s five-

    forces model and Jay Barney’s VRIO framework. It is also important to understand the position

    of your industry in its life cycle (introduction, growth, maturity, and decline). This will help you

    forecast the likely development of key technologies in the near future and their overall effects.

    For instance, while it is true that new technologies can eliminate some jobs, they also open up

    the economy by creating new ways for people to grow. Examples of such transformative and

    disruptive innovations include 5G, blockchain technology, artificial intelligence (AI), machine

    learning, 3D printing, augmented reality, and wearable devices. As business leaders, you should

    explore how these innovations can offer solutions to existing business problems and improve

    communication within and outside the organization. Those who adopt these technologies stand to

    gain the most and achieve a sustainable competitive advantage.

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