Business Level Strategy for Digital Technology- myassignmenthelp

Question: Discuss about theBusiness Level Strategy for Digital Technology. Answer: Impact of internet and digital technology in the market of Kuwait Competitive rivalry: The introduction of technology and internet has increased the access to the outer world for every individual. The internet is increasing the scope for trade in international market. Latest technology and internet access is allowing the buyers and sellers to meet at any point and get their desired product at desired value. The internet has many positive and negative aspects that are affecting the business in every way. The use of internet is increasing the communication between the consumer and seller and making it easy to understand the market. Along with the privilege, the internet is also increasing the competition for the business in the market. Earlier the businesses were limited only to a location or particular zone. Due to the introduction of internet, the businesses are getting chance to explore worldwide and expand their business across the world. The use of internet and latest technologies has introduced the companies to new customers and areas where the product was in deman d (Bosomworth 2015). This increased the scope for the businesspersons and business market to get a better opportunity to expand. At the same time, new rivals also arose from such sources. New companies and businesses got support from such technology and risked to introduce themselves for the global market. Thus, it can be concluded that internet, technology has benefited the business market, and at the same time, it has increased the threat to those business markets (Eid and El-Gohary 2013). Bargaining power of supplier: The technology and internet has helped the business to expand and increase their demand worldwide, thus leading to a brand name and popularity. This has affected the bargaining power of the suppliers in a negative way. Due to an increase in the demand, the company has made a revenue expansion and a better scope in future market. This has led to a demand in the supplier market for the company (Chaffey and Ellis-Chadwick 2016). The increased demand among the suppliers has decreased the bargaining power of the suppliers. The huge number of suppliers desired to provide material to the company and hence the company can choose among them according to their price satisfaction. This has led to a decrease in the supply power. However, the suppliers are also getting an open access to new and unknown companies those were not reachable earlier but due to technology and internet, the companies are available to them now. This might have provided the suppliers to choose among the companies but the supplier bargaining power is still affected in a negative way in this aspect(Abdulla, Naser and Saeid 2014). Bargaining power of consumers: The bargaining power of consumer has increased due to internet and technology. The technology has allowed a variety of choice to emerge for the consumers. Thus, it has become easy for the consumers to select as per their requirement and choice. The consumers can easily access the internet, site their preferable sites, and buy the product they require. Due to internet access a variety of brands and products are reachable to them in a single place. The customer bargaining power has increased and the scope for choice and selection has increased among the customers(Vinerean et al 2013). In Kuwait, the internet usage is quite high and hence it can be assumed that the consumers are using internet to purchase their product according to their choice. The country has a high cost of living if compared to other neighbouring countries. They have a high demand for goods and products and the transaction scale and ratio of consumer is high for the country(Martins,Oliveira and Popovi? 2014). Thus, i t can be concluded that the consumers of Kuwait has a high bargaining power. Threats to new entrants: Kuwait has a huge market for Oil and petroleum, at the same time they also have many new arising businesses. The new businesses are becoming a reason of threat for the previous businesses. The latest technology and internet is creating a scope for international market to reach the country and transact business over there. The country has an open economy system thus allowing new and foreign countries to trade with them. Introduction of internet is increasing the opportunity for foreign countries to enter the country and decrease the demand for local companies. The existing companies are losing their demand and power due to the new entrants. According to (Gupta 2013) Kuwait has a disposable income that are spent on luxury products and entertainment. The country spends a huge economy for luxury items like cars and mobile phones. The internet is opening the consumers access to the outer world thus allowing them to purchase these items from different countries and companies (Westerman, Bo nnet and McAfee 2014). The existing companies, which used to target these customers for their luxury demand, are losing their value. The high profit that the companies used to enjoy are reduced thus allowing the new companies to enter the market. Thus, it can be concluded that internet usage and technology development has increased the threats of new entrants in the market, affecting the existing business. Threat of substitutes: The improved technology and trends also tends to improve the income scale in various prospects. The emerging technology has also increased the scope for substitute product and services. The technology has made it easy for intruders to bring duplicate products, substitutes in the market. The alternate products come with an attractive offers or reasonable price, thus decreasing the demand for the real product. The competitive market has made the substitutes demand higher. People tend to buy products of same quality at reasonable price. The option for consumers also increases thus decreasing the demand for the product in the market(Drnevich,. and Croso 2013.). Companies that have ruled the economy are losing their power and monopoly in the market. The substitutes are also increasing the consumers choice in the market. Thus, to conclude the introduction of internet and digital technology has increased the chances for substitute products and services in the market. Threats to new entrants in small scale industry in Kuwait Insufficient capital- The existing companies already has raised revenue for them. The companies that will be new to the market have to raise fund equivalent to the present industry. The companies have to face the loss or no-profit situation for their business for first few months. The companies have to bear the cost themselves, as the consumers will take time to familiarise with the new product and start buying the product. The new companies can meet the issues by creating a market reputation and fame equivalent to the previous companies which had been standing in the market for a long time, thus a extra expenditure has to be incurred by the new company for marketing and advertisement. Lack of trust- The new companies will take time to gain the customers trust. The emerging companies will not be equally popular to the consumers as the existing companies are. The emerging companies have to take initiative to get familiarise to the consumers. They have to introduce new offers and discounts for attracting the consumers and increasing their demand in the market(Alonso-Almeida and Llach 2013). To mitigate the problem the companies should keep a record of their consumers and send them messages and reminders weekly or monthly to remind them about the service or product they took from the brand or business. They can start up new discounts and offers to attract the customers. They can take advantage of the high price of the existing companies and reduce their price to attract the customers. Kuwait consumers prefer previous trends- The customers/consumers tends to use old trends instead of changing the product with technology change. The consumers prefer old models or old brands instead of trying new brands and products. The consumers are not comfortable with new brands and this has caused a downfall in mobile market in 2016. According to (Kontot, Hamali and Abdullah 2016) the smart phone market has seen a massive decrease in the Kuwait market and only few old brands like blackberry are still used by the country. The only reason for such a downfall in the industry is the tendency of the customers to prefer the old brands. The problem can be solved if the consumers are educated about the advantages of the new technology and offerings by the companies. The consumers should be well informed about the privileges and advantages given by the new brands to the consumers. The companies can start-up workshops and demo sessions for the users where they will get to know about the w orking of the products. The consumers should be informed about the latest versions and updated version of products. Thus, if the consumers are well aware of the products then there are chances for the products to be accepted by the consumers (Labrecque et al). Lack of proper organizational goal- The companies lack a proper organizational goal. The new companies target for making a place in the market, at any cost. They tend to increase their position in the competitive business market and thus, lack the requirement for organizational goal. The company lacks the target for improving their skills and production or sale in the market. To meet the problem the companies should build a proper management team who will take care of this department. Regular meeting and feedback from workers is necessary to maintain the internal environment of the company. The managerial department should be more aim oriented and well informed about the company targets. The company should not aim only for a market position but also for the company goal. References: Abdulla, A.M., Naser, K. and Saeid, M., 2014. Employability factors of business graduates in Kuwait: Evidence from an emerging country.International Journal of Business and Management,9(10), p.49. 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