Business and the Technological Environment

BUSS4 Technological Environment

Technology• Changing technology can

represent an opportunity or a threat

• It can provide a firm with a competitive advantage or make its product or service obsolete

• Things like CAD/CAM and industrial robots means that firms can reduce their costs however technology changes so fast that often it is out of date as soon as it is implemented

• The internet has been a big opportunity and a very large threat to the retail industry

• Online shopping means much larger markets but retailers are having to find ways to tempt people into shops

Technology• Research still says that 70% of

people like to be able to touch a product before they buy it

• Some online retailers are moving into bricks and mortar

• Screwfix started out as a catalogue retailer in 1979, and its listings of nuts, bolts and nails were the cornerstone of any tradesman's toolkit

• In 2005, after the business was bought out by the retail giant Kingfisher, Screwfix made the move from paper to bricks and mortar.

• Oak Furniture Land started life as an eBay retailer in 2003

• Soon that was not enough, • It now does 65% of its trade in-

store - and that has boosted its turnover considerably

Technology - Evaluation• Whether new technology provides an

opportunity or a threat for an organisation depends on the firm’s resources and their attitude to change

• The introduction of new technology needs to be carefully managed

• Managers need to think about the compatibility of the technology, the financial implications of buying and implementing

• People are often suspicious or worried by new technology and managers need to think about speed of implementation and how it is introduced

• Organisations have to at least keep up with their competitors’ technology or be ahead

• It must be remembered that a Kaizen approach (gradual improvements) can be as successful as dramatic technological change