Conservative Approach of Organosations Essay Example | Topics and Well Written Essays - 1500 words

Conservative Approach of Organosations - Essay Example Some say, â€Å"Attack is the best defense† while others preach, â€Å"defense is the best attack† (Shim, pp. 62, 2011). This paper is an attempt to capture a glance of this debate by exploring the arguments of both sides of the debate. Discussion Arguments in favour of aggressive approach Following could be some of the advantages in favour of the aggressive approach of companies. First, it is always difficult for firms to compete with each other when the switching costs incurred by the buyer for a product or service are high. This is more likely to be true in the technological market since the switching costs goes on to include the high fixed investments, training expenditure and others (Markides & Geroski, pp. 139-140, 2005). Therefore, when a new firm tries to compete with the first mover in the industry, it always has to consider the switching costs of buyers that are high in case of technology related or technology based products. Therefore, the new firms has to co me up with a value proposition that not only offers more value than the existing product but that value should also be sufficient to induce the customers in incurring the switching costs (Geel, pp. 351, 2011). ... 20-21, 2009). Third, there are no doubts in the fact that firms that are quick in capitalizing on technological opportunities also develop a unique relation with their buyers that other firms fail to have. These firms get more time to exploit the distribution and supplier channels thus their relationship with all of distribution and supplier channels stands out of the crowd (Skarzynski & Gibson, pp. 168-169, 2008). Further researches reveal that not only firms that capitalize on technological opportunities end up getting hold of those superior and innovative technologies but at the same time, they also end up acquiring the lion’s share of many other resources associated with the same. For example, if there any assets or natural resources associated with the business that is unique, the firm may be able to acquire that on well below the market price or may have great bargaining advantage over the suppliers, which other firms will not have when they enter into a crowded market ( Shim, pp. 62, 2011; Porter, pp. 46-47, 1998). The importance of adopting new technologies is also evident from the blue ocean strategy as well, which is, in itself, a new and unique chapter in the field of strategic management. The strategy argues that the entire field of strategic management is faulty and flawed in the sense that it encourages firm to remain and fight in the red oceans. The blue ocean strategy divides the marketplace into blue oceans and red oceans. Most of the firms are in Red Ocean that is characterized by their fierce competitive environment, cutthroat competition, increasing pressuring on firms to beat competition (Markides &