R&D implementing Essay Example

in the city. One leader proposed the idea of sponsoring a business incubator as a potential solution. This leader suggested that an incubator can help the city achieve its goals. An incubator refers to programs specifically created to provide support for the successful growth of entrepreneur companies. These programs offer various resources and services such as physical space, capital, coaching, common services, and network connections.

The incubator can offer financial and technical services to help the resort establish their business. They can provide office and manufacturing space at a reduced rate and allow the use of staff supplies. Additionally, they can offer advice and assistance in developing the business. The retreat can remain in the incubator for two years to achieve their goal of reducing overhead and operational costs for new businesses. An incubator is an institution that supports the growth of startups by providing funding and guidance. It allows companies to share resources and expenses until they become self-sufficient.

By establishing an incubator in Salisbury, the growth and success of new businesses would be facilitated. Consequently, these businesses would have the opportunity to relocate to their own premises and employ local residents. In doing so, the city would avoid the need to provide tax incentives or engage in competition with other cities to attract existing companies, while simultaneously fostering the development of indigenous enterprises. Points Received: 30 of 30

Question 3: (TCO B) The adoption of a company's technology by users before other technologies can give the company a significant advantage, making it difficult for competitors to catch up.

The early adopters are well integrated into the social system and gain the admiration of

their peers for accepting the dominant design. Competitors face difficulties in keeping up with fast innovation and decreasing prices, which arise from customer penetration. These advantages significantly aid in the spread of a company's technology. Other factors to consider are the time and effort needed to switch technologies or acquire new skills. Furthermore, the compatibility of the new technology with complementary resources and its adoption rate within the market also have a notable impact.

Path dependency plays a crucial role in early adoptions, as sponsors can use their influence to persuade suppliers or distributors to support the technology and gain a major portion of the profits. This income can be subsequently reinvested to improve the technology, collect feedback for further improvement, and attract developers who create complementary products. Furthermore, the company responsible for the technology builds absorptive capacity, allowing them to learn and develop a comprehensive understanding of its different elements in the future.

Hence, when a technology is embraced early on, even if it is initially less advanced compared to other technologies, it has the capacity to progress at a quicker rate than its competitors. This can create difficulties for rivals in catching up. Page: 65 29 of 29

Question 4 : (TCO B) Besides quality and technical advantage, there are other factors that affect the technology trajectory and chance of success of a new technology. These factors include timing, complementary goods, and installed base technology. If a company is able to get a head start on technology, it will have an advantage in the market and cannot be easily overtaken.

The determination of the technology's lifespan is influenced by its sponsor. The success

and reputation of the industry leader also play a role in determining the support and effectiveness of the new technology. The number of long-term users is determined by the installed base, and the industry leader can innovate free or trial period complementary goods. These practices help differentiate the product and establish a dominant design. Timing is emphasized as an important influencing factor.

Having the first mover advantage in technology can give a company a strong edge, making it challenging for competitors with better alternatives to surpass it. The sponsor of the new technology also plays a vital role. When an industry leader introduces a new technology, its chances of success and long-term viability are higher. This is because the market leader's reputation, track record of achievements, and influence over distributors and suppliers support the technology.

Complementary goods and an established customer base can also be highly significant. If a company obtains an advantage in either of these areas (due to luck or offering its product for free, for example), it may initiate a cycle of network externalities that enhances its dominance.

Question 5: (TCO C) There is a scarcity of upcoming firms in the aerospace manufacturing industry, despite the profitability of many existing firms. This can be explained by analyzing at least one force from Porter's Model. Porter's Model helps identify the factors that attract companies to an industry.

The external environment can have a dual effect on new firms, bringing both threats and opportunities. The market's level of competition is influenced by various factors like competitors' size, price, differentiation, and demand conditions. New companies that face less fierce competition tend to prosper compared to

those facing a larger number of competitors. Moreover, certain new firms encounter difficulties in establishing competitive prices, which can result in adverse consequences for their business.

IF a firm is not aggressive enough to compete, it does not gain long-term value. Some competitors may be so different that there is less direct rivalry. If the demand for the aerospace firm is not high, new upcoming firms cause less competitive pressure. According to Porter's Five-Force Model, the threat of potential entrants is low due to entry barriers. The cost of starting an aerospace company is high and existing companies are well-established.

The presence of these large companies with their extensive contacts, personnel, and skills makes it extremely challenging for new companies to compete with them and fulfill market demand. As a result, the threat of potential entrants is low.

Chapter 6, page 115 Question 6.

Question: (TCO D) Johnston Products has collected data to assess the desirability of a potential project. It has information about the expected cash flows in different scenarios. Additionally, it has conducted a focus group to rank different product attributes and received rankings for various marketing techniques from a consulting company.

Johnston Products should employ the Data envelopment analysis as a means to assess this project. This particular method is deemed the most suitable since it places emphasis on various aspects such as cash flow estimates, ranking the project alongside current competencies, evaluating its potential for developing future competencies, assessing technical feasibility, and ranking its desirability to customers. The measurements considered in this case include cash-flow, focus group data, as well as the utilization of a consulting company

to analyze multiple criteria and make multiple decisions.