Macro Environment Analyses
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Chapter 2: External Analysis: The Identification of Opportunities and Threats: 2-7c Technological Forces Book Title: Strategic Management: An Integrated Approach: Theory and Cases Printed By: Pearl Chen ([email protected]) © 2020 Cengage Learning, Inc.
2-7c Technological Forces
Over the last few decades, the pace of technological change has accelerated. This has unleashed a process that has been called a “perennial gale of creative destruction.” Technological change can render established products obsolete overnight and simultaneously create a host of new product possibilities. Thus, technological change is both creative and destructive—both an opportunity and a threat.
Most important, the impacts of technological change can affect the height of barriers to entry and therefore radically reshape industry structure. For example, the Internet lowered barriers to entry into the news industry. Providers of financial news must now compete for advertising dollars and customer attention with new, Internet-based media organizations that developed during the 1990s and 2000s, such as TheStreet.com, The Motley Fool, Yahoo Finance and Google News. Advertisers now have more choices due to the resulting increase in rivalry, enabling them to bargain down the prices that they must pay to media companies.
Chapter 2: External Analysis: The Identification of Opportunities and Threats: 2-7c Technological Forces Book Title: Strategic Management: An Integrated Approach: Theory and Cases Printed By: Pearl Chen ([email protected]) © 2020 Cengage Learning, Inc.
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