Business – 1.1 Enterprise – The nature of business activity | e-Consult
1.1 Enterprise – The nature of business activity (1 questions)
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Answer: Technological change can both enhance and erode a multinational’s competitive advantage.
- Enhancement through innovation: Adoption of advanced data analytics allows the firm to optimise supply‑chain efficiency, reducing costs and improving speed to market.
- Product differentiation: Investing in research and development leads to unique, high‑tech products that command premium prices and create brand loyalty.
- Risk of obsolescence: Failure to keep pace with emerging technologies (e.g., AI, automation) can render existing processes outdated, allowing rivals to capture market share.
- Strategic flexibility: Cloud‑based platforms enable rapid scaling across regions, supporting global expansion and responsiveness to local market demands.
Overall, the net effect depends on the firm’s ability to invest strategically, integrate new technologies, and continuously innovate.