Question

Discuss the implications of Moore’s law and faster, cheaper computing on a firm’s ability to create a sustainable competitive advantage.

Answer 1

Ans) In today's technological advanced world ,the competition is mostly focussed on the development of technology as the motive to be competitive and survive it is purely a case of reduction of cost.As all of the work is mainly computerised there is a constant need to be fast and accurate in computing ,this will reduce the cost of operation as well help in reducing the wastefull activities which increase the overheads.We can take the example of Mc Donald franchisee which has a very advanced order processing software that will reduce the order processing time as well as shorten the waiting period of customers now customers can enjoy their meals in the limited time they get from the working hours ,this will increase customer satisfaction as well results in competitive advantage against other food restaurants also competitive advantage is related to additional advantage a perticular firm has over other In this case is the technological advancement.Moore's law state that the computing power of a microchip doubles after two years which means there is a great opportunity as well as challenge for the companies to advance their capabilities every year to be competitive hence to be faster and cheaper is the requirement of this era.The Moore's law state that number of transistors should double in two years hence technically it was related to the computer industry and contributed hugely to the development of faster and less costly computing hence to technology giant the thirst for faster and faster computing is a matter of competitive advantage.