Post by account_disabled on Mar 6, 2024 4:09:01 GMT -6
The film photography market that when one of its own engineers invented a digital camera in 1975 it saw the innovation as a threat to its core business model and failed to develop it. Its easy to say with hindsight of course but if Kodak had analyzed the strategic risk more carefully it would have concluded that someone else would start producing digital cameras eventually so it was better for Kodak to cannibalize its own business than for another company to do it. Failure to adapt to a strategic risk led to bankruptcy for Kodak. Its now emerged from bankruptcy as a much smaller company focusing on corporate imaging solutions but if it had made that shift sooner it could have preserved its dominance. Facing a strategic risk.
Doesnt have to be disastrous however. Think of Xerox which became synonymous with a single hugely successful product the Xerox photocopier Job Function Email List strategic risk to Xeroxs position but unlike Kodak it was able to adapt to the new technology and change its business model. Laser printing became a multibilliondollar business line for Xerox and the company survived the strategic risk. 2. Compliance Risk Are you complying with all the necessary laws and regulations that apply to your business Of course you are I hope.
But laws change all the time and theres always a risk that youll face additional regulations in the future. And as your own business expands you might find yourself needing to comply with new rules that didnt apply to you before. For example lets say you run an organic farm in California and sell your products in grocery stores across the U.S. Things are going so well that you decide to expand to Europe and begin selling there. Thats great but youre also incurring significant compliance risk. European countries have their own food safety rules labeling rules and a whole lot more. And if you set up a European subsidiary.
Doesnt have to be disastrous however. Think of Xerox which became synonymous with a single hugely successful product the Xerox photocopier Job Function Email List strategic risk to Xeroxs position but unlike Kodak it was able to adapt to the new technology and change its business model. Laser printing became a multibilliondollar business line for Xerox and the company survived the strategic risk. 2. Compliance Risk Are you complying with all the necessary laws and regulations that apply to your business Of course you are I hope.
But laws change all the time and theres always a risk that youll face additional regulations in the future. And as your own business expands you might find yourself needing to comply with new rules that didnt apply to you before. For example lets say you run an organic farm in California and sell your products in grocery stores across the U.S. Things are going so well that you decide to expand to Europe and begin selling there. Thats great but youre also incurring significant compliance risk. European countries have their own food safety rules labeling rules and a whole lot more. And if you set up a European subsidiary.