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Technological Environment
Strategic Importance of Technology

The key relationship to consider is that between technology and strategic success
Technology may not be a source of competitive advantage
- If competitors exploit it too
Rapid technological change can challenge all competitors in a market
What is a Business Model?

How…

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Substitutes New products may displace old
- E.g. Online streaming for DVD, which in turn
replaced videotape
Technology in other markets may "steal"
customer spending from other markets
- E.g. more spending on smartphone apps may
reduce spending on PC software
Power of Customers and Suppliers Technology may free…

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Demand Factors Affecting Innovation Diffusion
Demand Factor Potential Effect on Technology
Market Awareness How aware is the market of the new
technology?
What promotional activity is required in order
for customers and distributors to support the
technology?
Observability What is the potential for a "band-wagon
effect"?
How easy is…

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