This industry also needs a very huge investment in Research and Development (R&D) so that the company could develop new innovative products at lower and competitive prices to survive in the market. Nowadays the industry puts more emphasis on the prices because now the customers have become more price sensitive. So Dell has advantage in this area as Dell has lower prices and is among the few companies that dominate the computer hardware industry but the new entrants will have a higher price and they will not have a technologically innovative product. Dell is already a brand and any new company will have to first deal with brand loyal customers so they will have also work heavily on their advertising and marketing. Therefore it is not very easy for a new company to enter into this industry; therefore Dell is having advantage here.
(2005) puts up that a firm will necessarily compelled to outsource its business processes when transaction dimensions are cheaper. Unobtrusively there is also some evidence to suggest that findings from transaction cost theory in BPO are realtively less conclusive (Harrigan, 1986; Walker and Weber, 1987; Rindfleisch and Heide, 1997). Sumantra Ghoshal and Moran (1996) argues that the formal and detailed contract advocated by transaction cost theory may more likely to result in opportunism and distrust. Thus, there may not be an sincere effort in maintaining a fairness reputation due to the presence of a contract (Baker et al., 2002). Mehta et al.
Generally, big companies advance their knowledge of market, stay close to their customers, and prefer to develop existing technology gradually. Nevertheless, they experience difficulties with capitalizing on the potential efficiency, cost-savings, or new marketing opportunities created by low-margin disruptive technologies. Therefore, by doing so, companies provide an opportunity to “disruptive innovations” at the bottom of the market (Danneels 2004). It allows a whole new population of consumers at the bottom of a market access to a product or service that was historically only accessible to consumers with a lot of money or a lot of skill. Generally, products based on disruptive technologies are typically cheaper, simpler, smaller, and, frequently, more convenient to use (Yu& Hang 2008).
This may be because it should be easier for companies to develop new products and/or new ventures within their current markets because of market-related knowledge, so companies that desire to enter new markets may find that current product-market knowledge and skills are not transferable to the new target market. Acquisitions also may have gained in popularity as a related or horizontal diversification strategy enabling rapid moves into related markets (or to expand market power) and as an unrelated diversification strategy. Also, acquisitions are the most frequently used means for companies to diversify their operations into international
Trade liberalization in developing countries may weaken consumer welfare in its beginning stages if proper protectionistic measures are not in place. Nevertheless, with trade liberalization, consumers in developing countries may gain with increased consumption possibilities, cost savings, innovation and greater choice alternatives. Since consumerism has remained in its infancy in developing countries, governments are under continuous pressure from the International Organization of Consumers Unions (IOCU) to protect the interests of consumers, especially protection from fraudulent claims or unsafe products. While in the lesser-developed countries, the consumers have little or no protection, education, or information about the market. Thus, these issues should
Corruption has been proved to decrease government budget on education in several countries. In countries where governments are less concerned with citizens interest, corrupt representatives may be anticipated to spend more funds on items on which seems easier to levy big bribes and keep them undisclosed. Both economic concept and common sense propose the forms of government outlay that offer more lucrative openings. First, is the availability of rental fee to encourage rent-seeking conduct.Second, is the unlawful nature of dishonesty and the resultant need for silence suggest that corrupt officers will choose merchandises whose precise worth is hard to monitor. Consequently, specified, high-technology merchandises will be chiefly sought after.
• Lack of training and credit: they are forced to stick to simple technology, escape from the rent by locating in unauthorized locations and also to cut the cost of regulations. • Policy prejudice: this makes it naturally difficult to compete with formal institutions. This may be attributed to government’s belief that modernisation is equivalent to development and hence the formal sector needs to be
The problem with protectionism arises when industries are selected for a reason rather than to gain a comparative advantage by providing subsidy. This kind of market distortion, and reduction in social welfare, is the reason behind the World Bank policy for the removal of subsidies in developing countries. Subsidy may provide immediate benefits to a country or an industry, but in the long-run it may prove unethical and has negative effects on the world economy. Subsidies are not doubt intended to support public welfare; however, they violate legal principles and thus leads to higher consumer prices or discriminate against some countries or producers to benefit
Importance of Risk Management in NPD Risk management has an effect on New product development cycle time. Overlooking or Under-Managing risk leads to increased uncertainty about project completion dates, excessive cost, an increase in the estimated lead time or a total project collapse. Over-Managing risk can lead to lost market opportunities because the longer than necessary lead-time means that market conditions have changed. Product lead-time frequently determines whether it is market or technological risk that is important. Products with short lead-time such as computers; calculators and computer games are less likely to attract high market risk because the market requirements have a relatively small chance of changing during new product development.
Importance of Risk Management in NPD Risk management has an effect on New product development cycle time. Overlooking or Under-Managing risk leads to increased uncertainty about project completion dates, excessive cost, an increase in the estimated lead time or a total project collapse. Over-Managing risk can lead to lost market opportunities because the longer than necessary lead-time means that market conditions have changed. Product lead-time frequently determines whether it is market or technological risk that is important. Products with short lead-time such as computers; calculators and computer games are less likely to attract high market risk because the market requirements have a relatively small chance of changing during new product development.