Technological Change

Not only has technology helped to improve the performance of a business, it has also led to new products

New technologies such as the internet and mobile technologies have changed the business environment

CAM and CAD have changed how products are designed and manufactured

Benefits

• New methods of production
• Lower Costs
• Higher profit margins
• Higher productivity
• Easier expansion/ diversification into new markets
• Automation
• New skills
• Flexibility

Problems

• Shorter product life cycles
• Higher R&D costs
• Monopolies and Barriers to Entry
• Mergers and takeovers of smaller firms
• Teething problems
• Unemployment – incapacity to do the job, job insecurity