Should Businesses Avoid Changing Their Strategies Due to the Risks Involved?

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On the one hand, I do think that businesses should avoid changing their strategies because of the risks involved as it can potentially damage finances and the reputation of the business. Not only is it often difficult to implement change, it can also be costly and as there is no guarantee that the new strategy will be a success, we must consider the opportunity costs associated with it. Instead of completely changing the strategy, businesses could use their money to improve their current strategy or find out what isn’t working for them and try to improve it. Not only will this be less costly, but it will also be easier to implement as staff are less likely to resist a small change than a large one. If we take Apple Inc. as an example,…show more content…
Keeping up with the industry and consumer tastes is especially important in rapidly changing industries such as the technology industry, as without staying at the forefront of development and innovation, it will be very hard for businesses in this industry to stand a chance of competing. In the technology industry as with biological species, it’s all about adaptability. If you can’t adapt, then you will be erased by history. A perfect example of this is Blackberry, which in June 2008 boasted shares topping $144 that are now only worth $6.50. BlackBerry’s failure to keep up with Apple and Google was a consequence of errors in its strategy and vision. First, after growing to dominate the corporate market, BlackBerry failed to anticipate that consumers — not business customers — would drive the smartphone revolution. Second, BlackBerry was blindsided by the emergence of the “app economy,” which drove massive adoption of iPhone and Android-based devices. Third, BlackBerry failed to realise that smartphones would evolve beyond mere communication devices to become full-fledged mobile entertainment hubs. BlackBerry insisted on producing phones with full keyboards, even after it became clear that many users preferred touchscreens. When BlackBerry finally did launch a touchscreen device, it

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