Business Policy & Strategy Essay Example | Topics and Well Written Essays - 11500 words

Business Policy & Strategy - Essay Example Established companies are already in the industry and dedicated to maintaining their clientele. Initially, such disruptive technologies have no market. During the ‘tug-of-war’ for expansion, ventures aimed at the explicit requirements of existing clientele or on the wants of current consumers that a dealer has not yet been capable to get in touch with will always influence schemes to extend goods for markets that are not present (Christensen, 2003, p. 77). A huge business may not think about a fresh, undersized market as a lucrative option. It might think that a million-dollar deal is not something to be worried about. The extent of the business must be proportionate with the extent of the market. From time to time, established companies have done well within small and simple product markets by starting ‘spin-offs’, or independent divisions to manage the fresh product. A well-known example is the division IBM in Florida, which created the Personal Computer d uring 1980. The head of the company seriously wanted the PC. He struggled against the interfering conflict as well as institutional disinterest for a number of years to obtain one. At last, he funded the venture with unrestricted finances, with project supervisor reporting to him directly without anyone’s interference. This initiates one of the most magnificent achievements in the history. The IBM PC was invented within record time, sales go up rapidly, and in a couple of years, IBM was the unbeaten leader of the industry. However, during the year 1984, sales of PC turn out to be vital to IBM's revenues, so executives in corporate headquarters regained power on the business. They suppressed improvement, decreased IBM's market share to below 5 percent, and from 1984, the company has persistently lost funds. In the meantime, the competitors such as Hewlett Packard, Compaq, and Dell have earned billions (Dastur, 2011, p. 139). Entering market for simpler, cheaper products may be inexpensive, but it is also less lucrative, sluggish, less consistent, and/or less resourceful.