Conservative Approach of Organosations Essay Example | Topics and Well Written Essays - 1500 words

Conservative Approach of Organosations - Essay ExampleSome say, Attack is the best defense while others preach, defense is the best attack (Shim, pp. 62, 2011). This composition is an attempt to capture a glance of this debate by exploring the arguments of both sides of the debate. Discussion Arguments in favour of aggressive approach Following could be almost of the advantages in favour of the aggressive approach of companies. First, it is always difficult for firms to compete with each other when the switching cost incurred by the buyer for a carrefour or service atomic number 18 heights. This is more likely to be true in the technological market since the switching costs goes on to include the high fixed investments, training expenditure and others (Markides & Geroski, pp. 139-140, 2005). Therefore, when a new firm tries to compete with the first mover in the industry, it always has to consider the switching costs of buyers that are high in case of technology related or techno logy based products. Therefore, the new firms has to come up with a value proposition that non only offers more value than the existing product but that value should as well as be sufficient to induce the customers in incurring the switching costs (Geel, pp. 351, 2011). ... 20-21, 2009). Third, there are no doubts in the fact that firms that are quick in capitalizing on technological opportunities also develop a unique sexual relation with their buyers that other firms fail to make water. These firms get more time to exploit the distribution and supplier carry thus their relationship with all of distribution and supplier channels stands out of the crowd (Skarzynski & Gibson, pp. 168-169, 2008). Further researches reveal that not only firms that capitalize on technological opportunities end up getting hold of those superior and in advance(p) technologies but at the same time, they also end up acquiring the lions share of many other resources associated with the same. For exampl e, if there any assets or natural resources associated with the business that is unique, the firm may be able to acquire that on well below the market price or may have great bargaining advantage over the suppliers, which other firms will not have when they enter into a crowded market (Shim, pp. 62, 2011 Porter, pp. 46-47, 1998). The importance of adopting new technologies is also evident from the blue ocean strategy as well, which is, in itself, a new and unique chapter in the bailiwick of strategic management. The strategy argues that the entire field of strategic management is faulty and flawed in the sense that it encourages firm to remain and fight in the red oceans. The blue ocean strategy divides the securities industry into blue oceans and red oceans. Most of the firms are in Red Ocean that is characterized by their fierce competitive environment, cutthroat ambition, increasing pressuring on firms to beat competition (Markides &