Fed_EX

Fed EX Literatures 1. The new economy requires innovation to gaining competitive advantage When we talk about the new economy, we're talking about a world in which people work with their brains instead of their hands; a world in which communications technology creates global competition - not just for running shoes and laptop computers, but also for bank loans and other services that can't be packed into a crate and shipped; a world in which innovation is more important than mass production; a world in which investment buys new concepts or the means to create them, rather than new machines; a world in which rapid change is a constant; a world at least as different from what came before it as the industrial age was from its agricultural predecessor; a world so different its emergence can only be described as a revolution. The Characteristics of the new economy include: · Significant levels of technological innovation, investing in innovative activities with new product/services or developments in existing product/services continually coming on stream; · Schumpeterian competition · High fixed costs in relation to variable costs · Fixed costs often sunk costs · Potentially long lived assets · High levels of uncertainty over the size and longevity of the market for any given product or service · Multiple technology, innovation, change, new, business, products, product, strategy, customer, process, organization, market, technological, global, service, need, firms, customers, competitive, competition, advantage, organizational, management, cost, company, processes, information, costs, companies, both, become, structure, strategies, research