Combining commercial and technological strength

In examining ways to generate new business opportunities, the focus has been on recognizing the
importance of external organizational linkages, and the process of associating these with internal
knowledge that helps to identify a different approach to how companies can generate new
business opportunities.
The conceptual framework shown in the figure represents the role played by the knowledge
bases of the firm in generating genuine business opportunities. A key activity is the continual
external scanning undertaken by the organizations commercial and technical arms shown at the
furthest right and left hand sides. Towards the center of the diagram is the process of assimilating
internal knowledge from the organizational knowledge bases. It is the assimilation of knowledge
from external environment via the companys external linkages with its internal capabilities that
leads to new business opportunities being created. The successful combination of all these
activities can lead to generation of genuine business opportunities. This comprises a commercial
opportunity with a technical opportunity where this is aligned with existing commercial and
technical competencies to ensure that the company genuinely has the ability to turn the
opportunity into a product. The complexity of the process may help to explain why creating
genuine business opportunities is so difficult to achieve since a wide range of activities need to
be in place in order for associations to be made.
The degree of innovativeness
The firms ability to survive is dependent upon the capability to adapt to the changing
environment this suggests that a firm has a range of options open to it. A company will attempt to
look ahead and try to ensure that it is prepared for possible forthcoming changes.
Leader/Offensive
The strategy here centers on the advantages to be gained from a monopoly, in this case a
monopoly of the technology. The aim is to try to ensure that the product is launched into the
market before the completion. This should enable the company either to adopt price skimming
policy, or to adapt a penetration policy based gaining a high market share. Such strategy
demands a significant R&D activity and is usually accompanied by substantial marketing
resources.

Fast Follower/Defensive
This strategy requires a substantial technology base in order that the company may develop
improved versions of the orginal, imporved in terms of lower cost, different design, and
additional features. The company needs to be agile in manufacturing, design and development
and marketing. This will enable it to respond quickly to those companies that are first into the
market.
Cost minimization/imitative
This strategy in based on being low cost producer and success is dependent on achieving
economics of scale in manufacture. The company requires an exceptional skills and capabilities
in production and process engineering. This is clearly a defensive strategy that involves
following another company.
Market Segmentation specialist
This strategy is based on meeting the precise requirements of a particular market segment. Large
scale manufacturing is not usually required and the products tend to be characterized by few
product charges. They are often referred as traditional products.