Scientific knowledge research inventions and innovations that result in new or

Scientific knowledge research inventions and

This preview shows page 11 - 14 out of 47 pages.

transportation, and of course the degree of customer satisfaction. Scientific knowledge, research, inventions and innovations that result in new or improved goods and services create the technological environment can be technological forces. Technological developments are even more important for organizations that deal with technological products, such as the case of GoPro with its cameras, GoPro may depend on technological innovations to keep living in highly competitive markets. The technological environment is perhaps the most significant force that currently shapes our destiny. The technology gave us wonders, such as antibiotics, organ transplants, and laptops, but also brought horrors like nuclear missiles, and the machine gun. It also brought the development of various products, such as automobile, television and credit cards. Our attitude toward technology oscillates between its wonders and its “mistakes”. Every day new technology replaces old technology. The transistors damaged the valve industry,
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xerography affected the carbon paper business, the car had an impact on the railways, and CDs damaged vinyl records. Every time the old industries fought with new technologies or ignored it their business declined. New technologies are synonymous of new markets and opportunities. In order, to GoPro don’t be negatively affected by the new technologies being discovered every day, the company must observe very careful the technological trends, focusing on the rapid technological changes, having high budgets for planning and development, focusing on small and big improvements. Also, Research and Development, should be a very high part of GoPro, this sector should have a high budget, in order to GoPro, have innovations and improvements, which can lead to advantages to its competitors E. Competitive Forces Understanding the competitive forces of a line of business is crucial to the development of strategy. The external environment analysis can be performed using the five forces competitive model developed by Michael Porter in the 70s. The model makes it possible to analyze the degree of attractiveness of a sector of the economy. This model identifies a set of five forces that affect competitiveness, among which one of the forces is within the sector itself and the others are external. Porter’s five forces model was published in one of his books called "Competitive Strategy: Techniques for Analyzing Industries and Competitors". This Model analysis five factors that together generate the Competitive Forces, this five factors should be well studied and developed to build effective strategies against it. This factors help a business, in this case GoPro, to understand and know better their competitive environment of the market and identify the strategic actions required to achieve marketplace advantage. Those five factors are the rivalry among competitors, threat of entry of new firms, threat of substitute products and services, power suppliers, and the buyer power (the customers).
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According to Porter, from this model it is possible that the organization analyze the
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  • Fall '17
  • Corinne Nicholson
  • Marketing, Porter five forces analysis

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