The business owners in the modern world are facing the challenges of the opportunities provided by changes in technology in the midst of threats. Digital disruption is a major issue to the business community today. It provides them with opportunities to exploit the market potential and impose various threats at the same time. Changes in technology disrupt the business models and alter the value of products and services. Additionally, the behavior of the consumers in relation to given products and services changes fundamentally when digital disruptions strikes. Therefore, owners of business organization are worried about managing their businesses in a way that will enable then to take the best advantage of the opportunities provided by digitization without succumbing to threats (Michael and James 2015).
An understanding of the opportunities provided by changes in technology and the threats involved is thus helpful to business owners. Digital disruption alters the market behavior by causing changes in both supply and demand. The markets have to adjust to these changes, resulting in new values of products and services. Changes in supply and demand produce new equilibrium in the market, disrupting the entire market system (Angus, Martin, and Jay, 2016). However, companies that have been able to utilize the opportunities and develop strategies for escaping threats have thrived very well. For example, Uber utilizes the market niche in the transport business by taking the advantage of digital disruption in the business. Companies use new opportunities to exploit the existing demand while creating more product value to increase customer satisfaction. The exposure to new opportunities and the automation of business activities due to technological expansion have significantly increased the profitability of business organization through cost reductions. This has attracted numerous new participants, resulting in increased competitions that increase market supply and product quality. However, digital disruptions have increased incidences of market instabilities that lead to extreme shifts in both supply and demand (Angus, Martin, and Jay, 2016).
References
Angus D., Martin H, and Jay S. (2016). The economic essentials of digital strategy: A supply and demand guide to digital disruption, McKinsey Quarterly.
Michael C. and James M. (2015). Competition at the digital edge: ‘Hyperscale’ businesses, McKinsey Quarterly, mckinsey.com.
