Only internal conflicts do not affect business success, although there are other superfluous things that have a great influence on the business. These are these things that sometimes have a significant impact on the company where some have a very small effect, but both in the means, the “affect” unfolds. This could be a positive effect on the business and could also be negative. One of the biggest influences is the “technological modification“.
The range of products available for consumers to buy is changing quickly. Consumers of only forty years could not even dream of personal computers, internet, mobile phones and air-conditioned cars. By seeking and developing new products, some companies have created huge new and profitable markets. Sony and Microsoft are two examples of companies that base their success on the idea of ”technological changes” to their advantage.
However, each new invention can replace an existing product. For example, videos are 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 obsolete in a few months. The way the products are made also change. The forty-year-old workers would not even have imagined how robots, word processors, machines and computer programs could completely change the way the products are made.
Now the question is how does a company have to respond to these technological changes? Could they simply ignore them and continue to produce products using shaped ways? The ugly truth is that very few companies could survive using this strategy. They would probably need to sell such small market segments that a good profit would be unlikely. Most companies are competitive in mass markets where new products and low prices are vital outlets.
Failure to introduce information technology will leave a company with obsolete and ineffective methods of writing letters, records conservation, communication and control of stocks. Do not adapt products and services to those supplied by competitors using new technology could lead to the fall in business. Therefore, there are advantages and disadvantages of technological changes to the business.
• New high-tech production methods increase productivity and lower average costs, make the business more competitive.
• New production methods can be adapted very quickly to a wide range of similar products, which gives the management of consumers.
• New production methods are expensive. Small businesses, in particular might have to continue using traditional methods.
• Companies that do not develop new products may lose sales and market share. They may lack business, which forces workers to lose their jobs.