Will the older organization have more difficulty than the new

Topic: Free
Sample donated:
Last updated: March 26, 2019

The answer to this question is very situation specific.

This largely depends on the condition, type and nature of the industry the organization is a part of. Therefore the claim that any one of the two types of organization has more difficulty would be correct in one scenario but wrong in the other.In an industry which is not so strong in terms of competition, the older organizations will have more difficulty surviving because newer organizations will come with new technologies and more efficiency. In contrast, the older organizations will be used to traditional outdated methods of operating and introducing change will be very difficult. Hence, the newer organization will introduce fresh approaches, efficient production methods, and lower prices and consequently take over the market (Geroski, P. et al, 1990).

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

On the other hand, in an industry that is very competitive, we can conclude that new organizations are at a disadvantage. They have to face much difficulty when entering the market. The dominant older organizations earn supernormal profits and because of the threat of losing their positions, they will create certain market conditions that will make it very difficult for new organizations to enter (George, K. D.

& Caroline Joll, E. L. Lynk, 1992). There are many barriers to entry that they will face which will make it difficult for them to enter. If an organization does somehow enter the market, it will face such strong competition that it will not be able to survive. In addition to this, the goodwill that is associated with the older organizations’ brand names is their strength and this strength helps them survive many situations that new firms cannot and for that reason we can say that new firms have more difficulty than older ones (TenHaken, V.

2008).Therefore, the answer to this question depends on the context that it is being studied in. Newer organizations come with many strengths and advantages, however at the same time, the experience, goodwill and familiarity of the industry that only the older organizations have can challenge the new organizations.


I'm Mia!

Don't know how to start your paper? Worry no more! Get professional writing assistance from me.

Check it out