Managing Technological Change for XYZ Inc
First of all, it is essential to refer to the fact that the framework of dynamic capabilities is mainly oriented on the assessment of the methods and sources of wealth creation and its capturing by the private business entities, operating in the current business environments, which in turn, may be characterized by the rapid technological development, innovation and high rate of competition.
It is possible to make a statement that the competitive advantage of the XYZ Inc., operating in the market of online marketing, is mainly grounded on the set of the distinctive processes (the core ways of combining and coordination, which in turn, are determined by the assets positions of the organization, and its path of evolution and development, which has been inherited or adapted by its top management). Amplification of the path dependence and its importance takes its place in the case of existence of the conditions of increasing returns.
The fact of the competitive advantage of the XYZ Inc. as well as its petrcetuev development are mainly dependent on the market demand as well as its stability. Additional emphasis should be put on the imitatability (replication by competitors) and the ease of replicability (the options of internal expansion).
It is suggested by the framework of the dynamic capabilities that the core determining features for the private wealth creation in the conditions of the rapid technological development are the following: homing the organizational, technological as well as managerial processes within the firm. Additional attention should be paid to the fact that the identification of the new options for the organizational development as well as effective and efficient organization of their embracement in a more fundamental way implies the creation rather than strategizing of the private wealth for XYZ Inc.
There is a set of various approaches towards consideration of the sources of wealth creation as well as the essence of the strategic business problems, which are faced by firms and XYZ Inc. in particular.
The framework, which is mainly oriented on the competitive forces, may face the strategic problems from the perspective of the industrial structure, product and services’ positioning as well as entry deterrence. The major emphasis of the game-theoretic models is put on the consideration of the strategic problems from the perspective of the interaction between rivals with the particular expectations regarding the way of their behavior within the process of interaction with each other. The core focus of the resource-based perspective is put on the active and effective use of the assets, specific for the particular business entity. The set of various and in majority of cases, complementary questions is asked by each of the above listed approaches. The major step in establishment of the conceptual framework for XYZ Inc., interrelated with the dynamic capabilities, implies an identification of the foundations, which, in turn, are distinctive and thus, imply the advantages, which are difficult in terms of being replicated- for their further designing, development, maintenance and enhancement for XYZ Inc.
One of the useful approaches towards vectoring the business-related strategic elements for XYZ Inc., is to identify the set of the aspects, which are not strategic for the particular organization. For being strategic, there is a need to shaping the capability to the needs of the users in such way that it is transferred into the form of the revenue source. One more required feature of capability in such case is its uniqueness – the option of pricing the produced products without the significant regard to the competition. Barney (1986) has stated that there is an option of purchasing the significant share of the homogeneous assets of the business entity, without significant regard to competition and complications in terms of their possible replication.
The major capabilities, which may be used by XYZ Inc. in the process of keeping the competitive advantage in the face of technological changes, are the following: first of all, it is essential to take in consideration the current needs within the market of labor force and apply into the practice the currently existing options of attracting the proficient experts. In addition, the top management of the organizations should consider the role of managing the innovations -which is the sufficient advancement of the business entities within their industries (Teece et al, 1997).
Finally, the constant monitoring of the market needs may be referred as the core success factor in terms of gaining the competitive advantage in the fast changing industry of online marketing. Otherwise, there is a high probability of losing the market share. In the case if the top management realizes the current situation of the market, employs the proficient experts and monitors the current state of affairs in the market, the business entity has an option of gaining the competitive advantage and thus, expansion of the market share (Lorenzi and Riley, 2013+).
The success in the current market is guaranteed by the up-to date approach towards managing the business processes alongside with keeping up-to-date manufacturing strategy. More than that, the customer care strategy is highly appreciated in the current markets, that is why the innovative business strategy should be elaborated by the top management of the XYZ Company in order to stay competitive and keep the high revenue rate within its industry.
References
Barney, J. B. (1986) Strategic factor markets: Expectations, luck, and business strategy. Management Science 32( lo), pp. 123 1 -124 in Teece, D.J., Pisano, G., Shuen, A. (1997) Dynamic Capabilities and Strategic Management. Strategic Management Journal, Vol. 18, No. 7. (Aug., 1997), pp. 509-533
Lorenzi, N.M., Riley, R.T. (2013) Managing Technological Change: Organizational Aspects of Health Informatics. Springer Science & Business Media
Teece, D.J., Pisano, G., Shuen, A. (1997) Dynamic Capabilities and Strategic Management. Strategic Management Journal, Vol. 18, No. 7. (Aug., 1997), pp. 509-533
