Discussion 1 Week 6 "Comparing First-movers in Technology" - Assignment Example

Comparing First Movers in Technology al Affiliation Comparing First Movers in Technology From the first and second e-Activities, analyze the key ways in which Intel and Microsoft capitalized on and reaped substantial first-mover advantages in pioneering new technologies. Provide a rationale to support your response. As learned from Hill & Jones (2012), first movers are companies that develop revolutionary new products, like Intel and Microsoft. As such, the key ways in which Intel and Microsoft capitalized on and reaped substantial first mover advantages in pioneering new technologies were noted in terms of enabling them to generate and endure competitive advantage, as well as “limit or slow the rate of imitation” (Hill & Jones, 2012, p. 244). From the videos, it was evident that Intel’s development of the first microprocessor (Intel Free Press, 2011); while Microsoft’s software design enabled them to pioneer in this endeavor and assume a proactive stance in related technological developments (Microsoft, 2012).

Moreover, Intel and Microsoft capitalized and reaped the following advantages: (1) captured the opportunity to “exploit network effects and positive feedback loops, locking consumers into its technology” (Hill & Jones, 2012, p. 244); (2) enabled establishment of brand loyalty; (3) generated substantial sales volume which eventually enabled economies of scale and learning effects; (4) enabled offering pricing strategies (switching costs); and (5) gained advanced knowledge on the pioneering experience (Hill & Jones, 2012).2. From the first and second e-Activities, compare Intel’s and Microsoft’s strategies in terms of their ability to profit from innovation.

Next, analyze the manner in which shifts in new technologies revolutionized the structure of the industry, increasing profitability and growth through global expansion. Provide a rationale to support your response. Intel’s strategies, when compared to Microsoft’s strategies in terms of abilities to profit from innovation were virtually on the same field. Through pioneering efforts, both Intel and Microsoft gained substantial market shares within their respective fields of endeavors. As such, the developed core competencies established significant competitive advantage that enabled them to retain leadership in these discoveries.

Moreover, the manner in which shifts in new technologies revolutionized the structure of the industry, increasing profitability and growth through global expansion – more commonly known as technological paradigm shifts, affect both Intel and Microsoft. For example, cloud computing, which is an example of the shift, could adversely impact sales of microprocessors or software applications. As such, the shifts could open new opportunities to new or old organizations, including Intel and Microsoft, to discover and design other related applications that would again revolutionize the industry and benefit global consumers.

ReferencesHill, C., & Jones, G. (2012). Strategic Management: An Integrated Approach. South-Western, Cengage Learning.Intel Free Press. (2011, October 7). Quantum Computing Cant Outthink Us. Retrieved February 8, 2015, from YouTube: https://www.youtube.com/watch?v=HUEqAp8oofEMicrosoft. (2012, February 27). TechForum 2012: A New Age of Personal Computing. Retrieved February 8, 2015, from YouTube: https://www.youtube.com/watch?v=juoAo8p8OI8