Question

what popular management dogma creates a dilemma for many leading companies trying to stay at the top of their industries, but paradoxically results in their failure when technologies or markets change?

Answer 1

Monopoly is the popular management dogma that creates a dilemma for leading companies trying to stay at the top but results in their failure when technologies or markets change.

Step-by-step explanation:

The popular management dogma that creates a dilemma for many leading companies trying to stay at the top of their industries, but paradoxically results in their failure when technologies or markets change is monopoly. Monopoly refers to a situation where a single company dominates the market and has little or no competition. While having a monopoly can lead to high profits in the short term, it can also make companies complacent and resistant to change, making it difficult for them to adapt when new technologies or markets emerge.

Answer 2

The pursuit of a monopoly position can hinder leading firms in adapting to new market conditions or technological advances, potentially leading to their failure. Companies must navigate between the advantages of being large and the agility of smaller firms in the face of evolving technologies and consumer tastes, maintaining a focus on adaptability and innovation.

Step-by-step explanation:

The popular management dogma that creates a dilemma for many leading companies and can paradoxically result in their failure when technologies or markets change is the pursuit of a monopoly. Firms that focus on maintaining a monopolistic position may fail to adapt to new technologies or changes in consumer preferences, leading to their eventual downfall. As technologies evolve, the battle between forces of smallness and largeness intensifies.

Notable examples include Microsoft in the software industry and Amazon in online bookselling. This ongoing dynamic makes adaptability a crucial asset for companies aiming to remain competitive in fluctuating markets. In market economies, this cycle of success and failure is normal, as companies battle with factors like old technology, poor management decisions, shifting consumer tastes, and fierce competition.