Hello, I need help with the following questions. Positive feedback and comments

Question

Hello, I need help with the following questions. Positive feedback and comments will be left, if both questions are answered properly. Thank you so much for your time!

Questions:

1. Why would a company choose to follow rather than lead technological innovations? Is the potential advantage of technological leadership greater when innovations are occurring rapidly, or is it better in this case to follow?

2. If you were in the grocery business, whom would you benchmark for technological innovations? Would the companies be inside or outside your industry? Why?

Explanation / Answer

1-Technological leadership is mostly used for gaining high profits as well as presenting a specific opportunity to get larger competitive advantage. This type of leadership can also be used to educate the customers as well as building a large infrastructure which support the overall Technology implemented into the organisation. it involves larger risk as well as higher costs. Even after investing large amount in the technological leading, there is no specific guarantee that the technological advancement would be beneficial for the organisation.
When technological advancement is happening very rapidly it is definitely better to lead the technological term as it would directly provide a competitive advantage as the specific field in with the company is investing in, no competitors. Less number of competitors means larger market share and a chance to setup the Monopoly for the specific technological innovation. Sometimes Technologies which are developed by the company are surpassed by their own innovations. And leading in the rapidly growing market is a better option.

Many firms which are smaller in size do not have enough resources to get the technological innovation. They would rather prefer following the technological innovation than investing a large amount of money in developing the specific Technology it is relatively less costly and a good cost of entry which is easy to determine.

2 -If I were in a grocery business I would have directly benchmark the inventory management system as well as the total electronic implementations inside the organisation. By having a specific order to manage the inventory and to have specific kind of managerial system which is depending on the technological advancement for the grocery system would be my main benchmarking concern. Buy innovating in the logistics as well as provision of the services to the customers and increasing the interactiveness between the organisation and customers.
If I am operating a small grocery store then the companies would be outside my industry as I would be directly dealing with the smaller grocery stores which are limited to a region. If I am owner of a large retail supermarket and dealing in large quantities then I would be having competition with the companies and this would definitely require technological innovation rather than following the technological innovation.

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