Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16/e
by Fred R. David, Forest R. David
Research and Development
The fifth major area of internal operations that should be examined for specific strengths and weaknesses as input into formulating strategies is research and development (R&D). Many firms today conduct no R&D, and yet many other companies depend on successful R&D activities for survival. Firms pursuing a product-development strategy especially need to have a strong R&D orientation. High-tech firms, such as Microsoft, spend a much larger proportion of their revenues on R&D. A key decision for many firms is whether to be a “first mover” or a “late follower” (i.e., spend heavily on R&D to be the first to develop radically new products, or spend less on R&D by imitating/duplicating/improving on products after rival firms ...
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