This theory supports the fact that companies offer the possibility of franchising at a greater degree in their early years because of their managerial expertise and their lack of sufficient capital to open more outlets by themselves (Castrogiovanni et al., 2006). The managerial expertise is an intangible resource that is gained by the company when its mangers acquire market experience by operating through time. Castrogiovanni et al. (2006) stated that according to the resource scarcity theory firms decide to turn towards the franchising mode of entry when they want to achieve economies of scale. This puts pressure on them to expand beyond their financial capacity, so their own resources are not enough for this purpose.
Product Differentiation : When existing competitors have strong brand identification and customer loyalty , differentiation creates a barrier to entry by forcing a brand requires spend heavily to overcome existing customer loyalties. Building enormous investment, takes time, and is of course fraught with risk. Capital requirements : The need to invest large financial resources to compete creates a barrier to entry, especially if the capital is required for risky or unrecoverable upfront advertising or research and development (R&D). • Switching costs. A harrier to entry is created by the existence of one-time costs that the buyer faces when switching from one supplier 's product or service to another.
Radical innovation can be a major disruption for a company. The management of radical innovation is a challenge for companies. In recent years, companies have introduced a new lexicon – chief innovation officer, vice-presidency (VP) of innovation and technology, director of radical innovation and similar terminology. It suggests that, companies are looking for organizational and managerial systems to cope with disruption, to organize and manage radical innovation in a more systematic way, to become less dependent on champions and serendipity. In the literature we also see growing concern for the management of disruption, of uncertainties (e.g.
Invention and innovation Invention is a term frequently used in the context of innovation. Invention signifies “creating something new that has never existed before”. Invention need not to satisfy any valuable customer need and need not include the exploitation of the concept in the marketplace. Innovation varies from invention in that it is more than the making of something novel; it is also incorporates the exploitation for benefit by adding value to the customers. Invention is frequently measured as the ability to patent an idea.
When these firms adapt ambidextrous strategy to meet increasing pressure of competition, they found it difficult to balancing between exploitation and exploration, and in fact the mainstream exploitation dominates the new stream of exploration. As a result, they return to “repeatable, scalable and the previous systematic manner”, and minimizing “good luck” or hoping to come up with surprising next innovation. In other word, applying ambidextrous strategy has to be tentative on the complexity of issues in the
Second, disruption is a process. The speed of technological improvements always exceeds the speed of customer needs. Therefore, with the continuous improvement of disruptive innovation products, the new properties will meet the needs of mainstream users, attract more customers and cause damage to incumbents. For example, compared to the xed-line telephone, the mobile phone is a disruptive innovation. Although the rst generation mobile phone has drawbacks such as high price and poor signal, the portability of mobile phone is good.
Bleeding Edge refers to bleeding edge technologies, which indicates the speed of technological progress. At the same time, the title has a metaphorical meaning: bleeding edge refers to a wound (Kelly) or even more, it refers to a loss of sharpness as in “the habit things have of ceasing to be themselves – in this case, things such as the internet and New York” (Robson). In other words, technology is evolving so fast it becomes a shadow of itself, not knowing what will be invented next. Because we live in a world of knowledge, the unknown causes
It means any processes, functions and decisions which may lead to a new identity and has three major dimensions as innovation, risk acceptance and leadership. (Aykol & Yener, 2008: 232). Innovation means any interests of population and supporting from new ideas and innovative processes and leaving technology and fixed functions. Risk acceptance means any powerful functions like investment in new and unknown markets, more obligations for investments with unknown consequences and/or borrowing more than usual. Leadership means any search for finding new chances and future viewpoints which may lead to introduce of new products prior than competitors.
Creativity is unleashed when people come up with new ideas in order to deal with their wonders in their own way. Innovation is defined as the new change which is generated with the aim to make something better. In the other words, people use “innovation” term to describe a creative idea which has been applied into the reality effectively. The main difference between innovation and creativity is measurable characteristic. That is why the thing that every organization actually seek is the innovation.
Management Information System (MIS) is simply referring to the management (organizations, business functions/processes, and human behaviors) of company information (data, knowledge and information) through a system (input, process, output and storage) by which organizational operation upgrades and the decision making becomes better. The continual change in technology as well as in the type of industries and markets makes the use of MIS an important and exciting topic at the same time. Going deeply, one cannot extract the true benefits of MIS without integrating the understanding of organizational management, technology and organization dimensions along with behavioral issues. That’s why it’s didn 't guarantee good returns by solo investment in the information technology, but with the consideration of a right business model and investment in the complementary assets of management and organization capital. MIS is considered to be one of the types of information systems and part of the Business Intelligence Systems (BIS) --which includes also the Decision Support Systems (DSS) and the Executive Support Systems (ESS).