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    Functional Strategies

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    A. In detail, list and describe the pros and cons of being a technological leader as a functional strategy for a firm,

    b. In detail, list and describe the pros and cons of being a technological follower as a functional strategy for a firm,

    c. Based on your response to items a and b, indicate which functional strategy you would recommend for a firm and describe, in detail, why you made this recommendation.

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    a. In detail, list and describe the pros and cons of being a technological leader as a functional strategy for a firm,

    Organizations can choose to achieve either cost advantage or differentiation when choosing to become a technological leader or technological follower.
    Pros:
    ? An organization can pioneer a product with lowest cost design or a unique, special product that increases buyer value. These companies want to achieve differentiation to sustain competitive advantage.
    ? It can become a respected innovative leader in the industry. Consumers look at a company's reputation and some of them follow the leader by patronizing its products.
    ? As a technological leader, it can invent ways of creating low-cost way of performing activities that are valuable to the organization.
    ? Company can serve market well by starting to innovate other activities that increase buyer value thereby being able to serve their consumers better.
    Cons:
    ? Companies invest in Research & Development in order to maintain its being a technological leader in the industry. It is a costly initiative and most of those who undertake such are only the bigger companies. They spend more on R&D to differentiate its products from the others.
    ? Although risk is built into all business activities, any decision has a risk implied which can affect the company's objectives. If an innovation fails to live up to its expectations and ...

    Solution Summary

    The solution discusses about being a technological leader or technological follower as a functional strategy for a firm. References are included.

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