Technological Innovation Organizations will continue to compete through technolo

Question

Technological Innovation

Organizations will continue to compete through technological innovation to maintain their stance. The technological innovation helped a lot of companies to be innovative with the access that supports the industries to understand the consumer behavior.

In the present competitive world, businesses are operating in such a way that they can understand the customer wants/needs, the prices consumers are willing to pay on a product and the convenience (Geographical location or Internet).

Information technology helped a lot of companies to be profitable due to business intelligence and analysis. I realized that whenever I am browsing on the internet,I do see advertisements that interests me and these are all based on my previous searches (Search Engine). Moreover, social media are also the means of communicating to customers due to pop-up ads that can entice consumers and contributes to more online shopping.

One of the major factors that can affect an organization and the consumers is the economy. I remember back in 2008 the number 2 electronics retailer in the United States, Circuit City filed for bankruptcy and blamed it on bad economy and the decrease in consumer spending. Meanwhile, part of the downfall contributes to dealing with consumers in an old fashioned way. They were behind in new technologies that was supposed to make Circuit City increases in sales. However, Circuit City failed and closed all their stores.

Economic downturn can affects businesses regardless of their investments on new innovation. It can also trigger consumers not to spend because they will be observing the unemployment rate and the status of the economy.

YOUR COMMENT PLEASE.

Explanation / Answer

Technological innovation is very important in this phase of increasing competition. Only technological innovations can help maintain companies to maintain their share in the market. Economic depression may affect the profits of the company even if they spend huge amount on innovation. But companies who spend on innovation will atleast maintain decent profit during depression.

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