COST FOCUS

COST FOCUS

The third business level strategy is focus. Focus is different from other business strategies as it is segment based and has narrow competitive scope. This strategy involves the selection of a market segment, or group of segments, in the industry and meeting the needs of that preferred segment (or niche) better than the other market competitors (Bolter & Mcmanus, 1999). This is also known as a niche strategy. In focus strategy, the competitive advantage can be achieved by optimizing strategy for the target segments. 

Focus strategy has two variants. They are:

 

1.   Cost Focus; and

2.   Differentiation Focus

Cost focus is where a firm seeks a cost advantage in the target segment; and Differentiation focus where a firm seeks differentiation in the target segment (Cherumilan, 2004). We shall discuss these variants later.

 

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Technology in Business Strategy

Role of technology in designing the business strategies of a firm ? discuss how technology has become an integral part of business unit ?

Ans : The word ‘technology’ comes from two Greek words – ‘techne’- the skill or craft needed to make something and ‘logos’ (discussion or knowledge of something). So technology means knowledge of how something is made.

Technology seems to be the most widely today in industrial world and several words or nomenclatures connected with technology are in vogue. These includes Research & Development, invention, technology development, technology strategies, technology forecast technology assessment, technology planning, technology information, technology transfer, technology absorption and adaptation, Industrial property systems, code of conduct and technology management. It is difficult to find so exact definition for technology, for it has been defined in many ways.

One definition identifies ‘technology’ as an application of knowledge that leads to production and marketing of goods and services. According to Betz, Technology develops business by providing technological knowledge for the goods and services that a firm produces. Technology innovation implies new technology creating new products and services – hence new business opportunity. Managing technology means using new technology to create a competitive advantages which is quite a difficult Job; partly due to differing cultures in a company.

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Technology Information

What is Technology Information ? Explain various sources of Technology Information ?

Ans: Technology information in simple terms means information on technology. This brings up two questions : what is information and what is technology. Information is referred to as a communication of facts results, ideas and thoughts. The ‘technology’ essentially means ‘know how’ that is ways of designing, manufacturing or utilising things. It can also defined as the know how to transform concepts into goods and services for the satisfaction of customers. It is a broad form of resource endowment and embodiment of knowledge for production of goods and services.

Technology is imbibed in various forms; the most common of this could be identified in the machines used for manufacture or the skills that are transformed through human beings. These forms would comprise know-how, know-why, technological processes designs, drawings, specifications, computer programmes and other information besides, industrial training, intellectual property rights etc.

SOURCES OF TECHNOLOGY INFORMATION :

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