Digital innovation || Digital innovation is an essential aspect of business growth that aligns with the current global technologicaldevelopment trend. For example, Dubai is at the forefront of digital innovation, encouraging businesses toembrace the digital revolution. Restaurants use apps, hospitality, and taxi industries are app-driven, etc.Evaluate the impact of a technology-driven industry for small organizations or new business entrants. Provide an example of a UAE business that you think has sutfered due to its inability to adapt to the ever-changing and developing data driven industry.

3. Digital innovation is an essential aspect of business growth that aligns with the current global technological

development trend. For example, Dubai is at the forefront of digital innovation, encouraging businesses to

embrace the digital revolution. Restaurants use apps, hospitality, and taxi industries are app-driven, etc.

Evaluate the impact of a technology-driven industry for small organizations or new business entrants. Provide an example of a UAE business that you think has sutfered due to its inability to adapt to the ever-changing and developing data driven industry.

ANS:

When a new company enters in market, the variables that influence the performance of the existence business may change and we have to maintain our position by preparing new planne . However the new company overcomes the existing barriers to entry can guide we in our strategic reaction to the new situation. As the market changes, we have to take into account the strengths of the new entrant when forming a strategy to keep our position as it is before, unless market will goes down.

   On the otherhand if the existing organization will not lose their position because of them the new company may not successful for coming days as we know there is nothing in universe that two similar things will succeed in same time.To control the organization system there have some important points mentioned in below

Barriers

Typical barriers to entry for a market are high capital costs to establish manufacturing or perfectly  stand with customer loyalty resulting from special product features, or economies of scale if existing competitors are large operations. If the new entrant invests heavily, we have to examine whether they have extensive capital resources or whether the investment has stretched their capacity. If they introduce a product similar to ours, we have to react. If they are smaller than our company, they will not have economies of scale able to compete on price.

Costs

When a new buyer enters a market, suppliers often can raise prices because of higher demand. The new entrant needs the same materials and components we do to offer the same kinds of products in the market. If we can lock in our supplier costs with long-term contracts while the suppliers charge the new entrant higher prices, we can maintain our pricing structure and compete on quality and unique features. If our suppliers raise prices, we can reduce inventory and seek substitutes for the most expensive items.

there are so many Small or new businesses in the UAE had failed because of their inability to stand with global technology, here one such a example provided,which was failed in the Emirate

the organization SMEs was failed because of flowing reasons

Capital 

one of the organizer says the ability to raise capital is crucial, given how thin capital markets are for early stage companies in our region.

but  there are two aspects of capital to watch out for: not having enough, and not spending it wisely.

There have been many startups with modest capital that have done well, The key is to maximise on the available resources and shed keeping up appearances, 

that one key factor to consider is that it is absolutely critical for early stage companies to be helmed by a founding team able to address challenges in market realities and adapting or pivoting the business to address the challenges,

“Most early stage companies will have to re-invent themselves in a process of continuous evolution before they reach a stable path to growth and sustainability.”