How the changes will affect a firm in a perfectly competitive market
For a company to take full advantage of new opportunities there must be certain characteristics outlined below:
There must be a structure through which decisions are taken are correct and may lead to appropriate actions. The internal relationship of all members of the organization should enable a flexible response to the demands of our customers and creating new business opportunities.
This structure depends on the existence of well defined channels of communication both within the company and in dealing with the outside, with its potential market.
Any company that looks to the future must have information about their customers and their needs. Market research is one of the main tools for obtaining this information. In addition the company should have its own response capacity, through the various functional areas of the same (designers, production engineers, vendors and distributors).
Currently, production and administrative processes are performed by automated equipment and computer systems respectively. This reduces the need for business as usual labor of physical abilities and need for expertise in the various departments of the firm, what Peter Drucker, Professor of Management, University of New York, called “workers knowledge “.
These situations indicate that management must be agile to respond to changing market conditions and dealing with individual consumers or groups. In short we can say that the work of managers is based on two basic functions: Marketing and Innovation.
The role of Marketing encompasses all customer-focused actions and needs, and includes:
- Information through market research needs and / or suggestions from customers.
- Market analysis by studying the profiles of customers, as they are distributed, social attitudes, psychological behavior, consumption patterns or shopping, etc.
- Noting the activities of competing companies, analyzing their products, entry strategies, advertising, etc.
- The design of the product and pricing policies.
- Defining the promotion and sales, product packaging, marketing, distribution logistics, etc.
- The sales policy: methods, post-sale services, acquisition financing to customers, and so on.
The role of Innovation is the process by which a company gets more and more benefits and higher levels of quality.
We must not confuse innovation with invention ever (I + D + i) which is the design and development of new technologies and therefore new products. The innovation we relate it to the economic development of the company, ultimately on the occasions on which it bases its
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