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Fundamentals of Management 7th Edition by Ricky Griffin
Edition 7ISBN: 978-1133627494Fundamentals of Management 7th Edition by Ricky Griffin
Edition 7ISBN: 978-1133627494 Exercise 2
Young, innovative, or high-tech firms often adopt the strategy of ignoring history or attempting to do something radically new. In what ways might this strategy help them? In what ways might this strategy hinder their efforts?
Explanation
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Introduction
Innovation enables young firms and start-ups to stand out with a product or service that differentiates them from the rest. Firms that adopt this strategy create new markets and tend to become leaders in their field. Therefore, a strategy of innovation can help a firm to grow and become successful in a short span of time.
Advantage associated with Innovation
• Hi-tech firms often have to cope with fast-changing consumer tastes and preferences.
Disadvantage associated with Innovation
• Ignorance of the lessons of history can prove costly for a firm which pursues the path of innovation. For one, customers may soon lose interest in a new product/service.
• The firms that take ideas from other firms step in to provide cheaper services and products, thus reducing the market share of the leader.
Conclusion
Hence, a strategy of trying out something new is not always successful, unless the firm is able to respond quickly to challenges and adapt or diversify when required.
Innovation enables young firms and start-ups to stand out with a product or service that differentiates them from the rest. Firms that adopt this strategy create new markets and tend to become leaders in their field. Therefore, a strategy of innovation can help a firm to grow and become successful in a short span of time.
Advantage associated with Innovation
• Hi-tech firms often have to cope with fast-changing consumer tastes and preferences.
Disadvantage associated with Innovation
• Ignorance of the lessons of history can prove costly for a firm which pursues the path of innovation. For one, customers may soon lose interest in a new product/service.
• The firms that take ideas from other firms step in to provide cheaper services and products, thus reducing the market share of the leader.
Conclusion
Hence, a strategy of trying out something new is not always successful, unless the firm is able to respond quickly to challenges and adapt or diversify when required.
Fundamentals of Management 7th Edition by Ricky Griffin
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