ANALYZING TECHNOLOGICAL CHANGES
 

 

 

 

 

 

 

 

 

 

 

 

Today it is possible to make simultaneous and instantaneous electronic transmission of voice, pictures, and graphics. People scattered over the face of the globe can now talk to each other directly, see each other, and, if need be, share the same reports, documents, and graphs without leaving their own offices or homes. Consider the impact of this innovation on the airline industry. Business travel should diminish in importance, though its place may well be taken by travel for vacations and learning. To analyze technological changes and capitalize on them, marketing strate- gists may utilize the technology management matrix shown in The matrix should aid in choosing appropriate strategic options based on a business’s technological position. The matrix has two dimensions: technology and product. The technology dimension describes technologies in terms of their relationships to one another; the product dimension establishes competitive position. The inter- action of these two dimensions suggests desirable strategic action. For example, if a business’s technology is superior to anything else on the market, the company should enhance its leadership by identifying and introducing new applications for the technology. On the other hand, if a business’s technology lags behind the competition, it should either make a technological leap to the competitive process, abandon the market, or identify and pursue those elements that are lag- gards in terms of adopting new technologies.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Briefly, the rapid development and exploitation of new technologies are causing serious strategic headaches for companies in almost every type of industry. It has become vital for strategists to be able to recognize the limits of their core technologies, know which new technologies are emerging, and decide when to incorporate new technology in their products. Political In stable governments, political trends may not be as important as in countries Environment where governments are weak. Yet even in stable countries, political trends may have a significant impact on business. For example, in the United States one can typically expect greater emphasis on social programs and an increase in government spending when Democrats are in power in the White House. Therefore, companies in the business of providing social services may expect greater opportunities during Democratic administrations. More important, however, are political trends overseas because the U.S. economy is intimately connected with the global economy. Therefore, what goes on in the political spheres of other countries may be significant for U.S. corporations, particularly multinational corporations.