Question

When new technologies arrive, only a few customers adopt such technologies. A large number of customer remain sceptical about the product. The cost of the new technology remain high. As a result it take long time for the businesses to focus on the new technology until the dominant design comes and the price become affordable by the large number of consumers. From your point of view, what might be the reasons established firms might resist adopting a new technology.

Answer 1

Answer:

There can be many reasons to the firms to resist adopting a new technology few of the common reasons are as below

1) Risk of failure of a new technology :- As a new technology and product, the firms are not sure whether the new technology will work as per expectation or not because there is probability of failure and no one is 100% sure about the new technology and that is why the established firm don't want to lose their customers and market due to failure of the new technology so they don't jump very initiallly into it upto a level of surety of successfulness of the new technology.
2) Lose of value and customer :- As a well established firm, the company don't want to lose their values as a result in losing customer trust and the customer will start leaving the firm which don't want any firm, it is very important to maintain value and trust with customer all the time.

3) Cost of the new technolgy :- The technolgy is costly because it will require lot of researching efforts and time, so due to its cost the new techology will take time to replace the old one which is already avaible at low cost, so it is very difficult to replace the old technolgy with new technology except the new technolgy should have new valuable feature that really needed by the business.

4) Difficulty to replace existing technology :- The existing techonogy is difficult to left-off beacase it involve several things like human resources may require training on new technology, dependency of old technolgy and other factors not allow to adopt the new technolgy at very early stage.

5) Lack of availability of human resources for new technology :- For the new technology their will be very less availability of the people who can work with new technology due to which the business continuity would get effected, which again create problem to the firm.

6) Higher operation cost for new technolgy :- The technology would may require higher operation cost as well after its adoption so this can be the factor which will resist the firm to use the new technology, due to high operation cost the overall profit may be not as per expected profit.

7) Low profit gain :- The new technolgy initially may give overall profit low, after calculating all the factors and cost there is not much significant gain due to new technology for the firm due to the old or existing technolgy, so a large number of customer remain sceptical about the product and technology.

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