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Competitive Advantage Of Technology Essay

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industry exist if broader outlook is considered. Viewing any industry as technologically mature often leads to strategic disaster. Moreover, many important innovations for competitive advantage are mundane and involve no scientific break-through. Innovation can have important strategic implications for low tech as well as hi-tech companies. Porter also addressed that the technology can alter the nature and basis of rivalry among existing competition in several ways. Technology affects competitive advantage if it has a significant role in determining relative cost position or differentiation. It can also alter the bargaining power of the suppliers and buyers. Technology, in several instances, is an entry barrier. Thus, technology can influence …show more content…

Thus, the firm’s technological lead is sustainable.  The technological change shifts costs or uniqueness drivers in favour of a firm.  Pioneering the technological change translates into first mover advantages besides those inherent in the technology itself.  The technological change leads to improvement in overall industry structure. Sources of Competitive Advantage: There are many sources of competitive advantage that can result from the development and application of new technology. Each of these is listed and briefly reviewed below: 1. Prevent competitors from using the technology Patents can provide companies with an effective way to protect competitive technology for a significant period, up to twenty (20) years. In addition, the ability to maintain technical know-how, operational expertise and trade secrets as confidential and proprietary information is an alternative (or complimentary) way to protect competitive technology in both the short and long term. 2. Make it hard for competitors to use or duplicate the …show more content…

This calls for substantial investment in R & D. One important compulsion for investing in technological advances in Japan its customer’s high expectations regarding design sophistication, quality, delivery, schedules and prices. Industry owners in Japan swear by the dictum – the customer is a god who is always right. High expectations of consumers pose a challenge and an opportunity to the owners of business

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