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Additional resources for Architecting Enterprise: Managing Innovation, Technology, and Global Competitiveness
Globalization and Emerging Firms 25 • Conversations about strategy innovation must cut across industries and organizations so that appropriate knowledge on innovation and technology can be shared among market players. • Strategy innovation leads to change management and needs to be managed meticulously within the organization as light to hard resistance to change may develop during the process of innovation breakthrough. People will embrace change when they see opportunities for rewards and growth.
The strongest forces become dominant factors in determining industry profitability and focal points of strategy formulation. The model identifies the key structural features that determine the strength of competitive forces within an industry in reference to profitability. It may be explained through the model that the degree of rivalry among different firms is a function of the number of competitors, industry growth, asset intensity, product differentiation, and exit barriers. Among these the most influential variables may be identified as the number of competitors and industry growth.
Managerial know-how (competencies and capabilities). It can be argued that world output would increase when the principle of comparative advantage is applied by countries to determine what goods and services they should specialize in producing. Comparative advantage is a term associated with the nineteenth-century English economist David Ricardo. 28 Architecting Enterprise In a global scenario it has been observed during the post-globalization period (1980 onwards) that in most developing countries manufacturing and marketing dynamics shifted toward lucrative sectors in business that offered comparative advantage.
Architecting Enterprise: Managing Innovation, Technology, and Global Competitiveness by Rajagopal