In this world, knowledge is the key of
business. The psychology of business has changed. This revolution of knowledge
creates a kind of threat for those companies that were not done any preparation
for it. We have seen many products, service or company that is no longer
competitive, such as Compaq. Once upon a time, there was a computer brand
called Compaq. It was one of the largest sellers of PCs in the entire world in
the 1980s and 1990s. Compaq no longer exists primarily because it lacks some
kind of knowledge. So, those who use old methods of production and old styles, eventually,
they and their products will be out of the business circle. Nowadays, companies
that have brain to create innovative ideas, they not only survive but also gain
profit. These days’ people have lots of way to know about styles products and
new trends. Therefore, those who maintain and up to date can survive in this
competitive world.
Sometimes it is working but
it needs more homework and struggle to do this. Main reason is that every
market has its own atmosphere. In this atmosphere, old business trend are not
fulfill the requirements. Organizations and firms do not know market knowledge completely,
customer’s nature, market competition and profit trends. Those who research
well they definitely earn abnormal profit. Another reason is market risks; if
they apply new ideas and indulge informative, they definitely reach people and
grasp the market very well.
If an old firm or product creates a network in new
markets, they definitely survived and dominate the market as well. We have seen such examples in this regard like
Bank of America and Hertz. If firms and organizations use modern techniques, hey
survived in this competitive market. If companies and organizations improve their
competitive power, controls the business elements and production process, they
can achieve new market demand. Another thing is that if companies reduce its
cost it reduce price and risk as well this act help firms to stand in the
market.
Sources :
- Dollinger M.J. (2006). ‘Entrepreneurship
strategies and Resources' 3rd eddition. New delhi: Pearson Education.
- Kay, Z. Z. Building The
Business Plan:Beginning Considerations.
- Wunker, S. (November/ December
2011). ACHIEVING GROWTH BY SETTING NEW STRATEGIES FOR NEW MARKETS. Ivey
business journal .
