Technological advancement: a threat to business development!!

It needs lot of speculation to find the reason for an industry’s death. But sometimes the reason that is a cancer of an industry become apparent. The recently published list offer by the market research conducted by IBIS World shows some of the crucial industries of US facing the threat of extinction. A look at the list will say that the industries were plagued by technology. Or should we say that the power of technological innovations got accelerated by several echelons by the effect of globalization and hence it is killing these industries? Globalization or technological innovations, whatsoever the cause may be, but the industries are facing great threat.

Among the 10 key US industries listed in by IBIS World, six are directly affected by technology; wired mean of communications or landline phones, newspaper publishing, video post production services, Video and game rental, photo printing and record stores. All of these industries don’t need any explanation as to why they are decaying. The technological advancement has shifted the preferences of consumers. They do require the services of this industry today, but in a far more different form.

Among the rest of the industries, industry for formal wear has fallen prey to the global competition. Cost competition, a significant driver of globalization, has offered formal wear in cheaper rate than before. Consumers are now ready to pay a few more dollars to possess a formal wear and refrain from renting the same occasionally.

The only debatable industry in the list is the manufactured homes. The report released by the IBIS World about manufactured homes industry is a dubious in this context. The growth has stagnated in this industry but the reason of the stagnation may not be technology or globalization. The industry needs innovation to make progress by increasing sales. The industry had been highly afflicted by the last decade’s housing bubble burst and is yet to come out of the chock. Hence, it gives a little of hope since the present stagnation can be momentary.