(a) In their essay “The new competitive landscape” Bettis and Hitt examines how technological changes alters nature of competition and strategy for firms and moving it towards a “new competitive landscape”, by firstly highlighting major technological trends driving the change and analysing the implications of these changes for strategic management research and practice.
They examine 4 technological trends that are most salient in driving the change. They suggest that the trend of (1) increasing rate of technological change and diffusion, phenomena of (2) positive feedback in industries with high knowledge content, the increasing (3) knowledge intensity in industries and availably of technology to the masses which lead to the (4) information age are the 4 technological trends most salient. Bettis and Hitt also suggested that these trends are interrelated with one another and there is no particular precise chain of causality as it is a complex social phenomena.
Finally, they analysed on the implications of these technological trends for strategic management research and practice. They highlighted 4 topics, which is the (1)increase in risk and uncertainty and decrease in forecastability, how technology also makes the (2)industries more ambiguous, the need for new (3)managerial mindset to stay current and the new (4)organisation and disorganisation phenomena.
They stated that the new competitive landscape offers a highly turbulent and chaotic environment for firms in which they need to employ new strategies to cope and concluded that more research needed to be done to fully understand the new competitive landscape and how firms can cope.
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(b) Technology causes firms to exist in unpredictable and chaotic environments with high degree of uncertainty in the markets, hence companies should strategically respond to it (Bettis & Hitt, 1995). Grubler (1998) mentioned 4 major trends brought about by technological development.
Grubler (1998), states that technology brings forth increase in scale, output an...