Extraneous Influence On Business – Technological Changes

Only internal conflicts do not affect business’ success though there are some other extraneous things which have a great influence on the business. These are those things which sometimes have a heavy affect on the business where as some have a very little affect but in both the ways, the “affect” is taking place. This could be a positive affect on the business and could be negative as well. One of the biggest influences is the “technological changes.”

The range of products that are available for consumers to buy is rapidly changing. Consumers of only forty years ago could not even dream of personal computers, the internet, mobile phones and air conditioned cars. By researching and developing new products, some businesses have created huge new and profitable markets. Sony and Microsoft are two examples of companies that base their success on using the idea of “technological changes” to their advantage.

How ever, each new invention can replace an existing product. For example, videos are being replaced by DVDs and iPods are now much more popular than portable CD players. The speed of technological changes means that new products can become out of date within a few months. The ways in which products are made are also changing. Workers of forty years ago would not have even imagined how robots, word processors, machines and computer programs might fully change how products are made.

Now the question is how should a business respond to these technological changes? Could they just ignore them and go on producing products using old fashioned ways? The ugly truth is that, very few firms could survive using this strategy. They would probably need to sell such small market segments that a good profit would be unlikely. Most of the firms compete in mass markets where new products and low prices are vital selling points.

Failure to introduce information technology will leave a firm with out of date and inefficient methods of letter writing, record keeping, communication and stock control. Not adapting products and services to those provided by competitors using new technology could lead to the downfall of business. Therefore, there are some advantages and disadvantages of technological changes to the business.

• New hi-tech production methods increase productivity and lower average cost, making the business more competitive.
• New production methods can be adapted very quickly to make a wide range of similar products this giving business more flexibility to meet consumer needs.

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