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This project is based on study about large Hi-tech companies in the world that are changing their business models to explore new opportunities thereby generating higher returns to the stakeholders. In this project, I will study in detail about a subset of the Hi-tech companies i.e. “IT companies that are transforming their business models from manufacturing hardware and goods to developing software, providing cloud services and solutions” using Hewlett-Packard as main case study. I will make a comparative analysis with IBM, Microsoft, Apple, Oracle and other major IT companies to have an ideal answer to the hypothesis. Thus, could able to relate my findings with different Hi-tech companies to answer the puzzle and prove whether it can be applicable or not. This project should prove the hypothesis that companies changing business models to explore and fulfil the growing market needs is the main reason for generating higher profits and faster growth of the company.
In order to provide a legitimate answer, we must first examine the companies that have already shifted, how they did it, and then make a comparative study among the companies that may wish to do so. The research study should give us an answer on how these companies have been performing so far. Doing comparative analysis among the most successful ones will provide a clear guideline to all those companies that wish to change in the near future.
The focus will be on determining, why IT companies are switching from traditional business models like manufacturing hardware to developing software, providing services and cloud solutions. Furthermore, this work will investigate the best option for the companies to go for, over the short and long term. We are going to analyse, why one option is better from the other and what gives such an advantage, especially when new companies wanted to go through such process.
Similarly, examining new market trends and economies makes an important part of the story. Without knowing the new trends and existing processes, this work would unable to find its meaning.
This assignment should as well keep on track the raising issues that companies face during this transformation, especially for well established firms. In addition, focus will be on market growth and demand for Hi-tech products which influence common markets.
The work will be based on a hypothesis: what companies should be successfully selling to their clients. By gathering information and with experience, will test the hypothesis and prove it to be right or wrong. Research will focus on few companies may be useful to enumerate which ones here and try to target the most successful firms.
III) RESEARCH QUESTION
As there are many Hi-tech companies that wish to bring huge returns to their stakeholders, the main goal would be to find the most successful firms, and research how they managed to adapt the change and predict which business models are the most likely to be successful in near future. Thus, the research will be based on comparative study of present and future market players. For this work I�ll use the hypothesis and list of questions in order to prove or disprove it. The hypothesis that should be the core part of my work is:
�Why IT companies started to shift from traditional business models like manufacturing hardware to developing software, providing cloud services and solutions?�
In order to answer, the secondary research questions to be asked are:
– What are the pros and cons of traditional business models?
– What are the pros and cons of new business models?
– What is the role of business model & strategy for companies� success?
– How would this change impact growth of the company?
– Why hardware business is largely losing its profit margin compared to software, cloud services and solutions?
– How some Hi-tech companies were able to generate higher returns to their shareholders through expanding their focus?
– How evolving business models have created sustainable advantage for the innovators?
This research will identify today�s nostrum that revolutionary companies adapt to succeed such as being first to understand and act upon a new technology, regulatory shift, or other significant discontinuity.
These are just essential questions. Many other research questions will be asked during this project research in order to fulfil and make it better. However, this list should stand for the central part of my work and good jump off point for my future work.
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