(a) In their essay “The new competitive landscape” Bettis and Hitt examines how technological changes alters nature of competition and strategy for firms and moving it towards a “new competitive landscape”, by firstly highlighting major technological trends driving the change and analysing the implications of these changes for strategic management research and practice.
They examine 4 technological trends that are most salient in driving the change. They suggest that the trend of (1) increasing rate of technological change and diffusion, phenomena of (2) positive feedback in industries with high knowledge content, the increasing (3) knowledge intensity in industries and availably of technology to the masses which lead to the (4) information age are the 4 technological trends most salient. Bettis and Hitt also suggested that these trends are interrelated with one another and there is no particular precise chain of causality as it is a complex social phenomena.
Finally, they analysed on the implications of these technological trends for strategic management research and practice. They highlighted 4 topics, which is the (1)increase in risk and uncertainty and decrease in forecastability, how technology also makes the (2)industries more ambiguous, the need for new (3)managerial mindset to stay current and the new (4)organisation and disorganisation phenomena.
They stated that the new competitive landscape offers a highly turbulent and chaotic environment for firms in which they need to employ new strategies to cope and concluded that more research needed to be done to fully understand the new competitive landscape and how firms can cope.
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(b) Technology causes firms to exist in unpredictable and chaotic environments with high degree of uncertainty in the markets, hence companies should strategically respond to it (Bettis & Hitt, 1995). Grubler (1998) mentioned 4 major trends brought about by technological development.
Grubler (1998), states that technology brings forth increase in scale, output and productivity, hence it is imperative that we leverage and incorporate technology to our advantage. We need to be flexible and respond quickly to changes brought about by technology. Incorporating technology increases productivity and we can make better products (better output) using lesser inputs (lesser production time and lesser energy) which reduce costs and therefore stimulate demand (Grubler, 1998). This will make our company grow. An article in College of Agricultural Sciences (2012) states farms leveraged technology to increased profits.
Secondly, Grubler (1998) mentioned that another trend observed is increasing division of labour. We cannot lag behind competitors and let them monopolise skilled workers. We need to explore technological learning and R&D to remain competitive and therefore we need to attract skilled workers. Knowledge is considered important as capital and labour (Bettis & Hitt, 1995). Technological learning increases productivity and lower unit costs of production as more experience is gained; positive feedback (Grubler, 1998). Investing more in R&D will increase innovation and returns and technologies improve faster and uncertainties diminish (Grubler, 1998). Newer technologies also meant that there will be an increased in complexity, so we need skilled workers to work in these areas as with increased complexity meant more percentage of failures.
The last trend is increasing interdependence and interrelatedness in technology. As technologies are dependent on other technologies for both production and use and also there is a need to acquire capabilities in related fields (Santangelo, 1999), we should look into the possibilities of alliance between companies where we can pool our resources together to create newer and better technologies to remain competitive on the...
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