Question

Onyxo Inc., a consumer electronics company, is the leading manufacturer of LCD televisions. LCD technology has been its core competency and the company holds 80 percent shares in that market. However, Onyxo Inc.'s competitors have now moved on to advance technologies like LED and 3-D televisions. According to the dynamic capabilities perspective, what should Onyxo Inc. do?a. Onyxo Inc. should start working on LED and 3-D television technologies to adapt its core competency to suit the external environment.
b. Onyxo Inc. should stick to its existing core competency, that is LCD technology, as it is the best in that segment.
c. Onyxo Inc. should take proactive steps to reduce the causal ambiguity and socially complexity of its core competency.
d. Onyxo Inc. should work on enhancing the mobility of its core competency.

Answer 1

Answer:

The answer is: A) Onyxo Inc. should start working on LED and 3-D television technologies to adapt its core competency to suit the external environment.

Explanation:

If Onyxo doesn´t start working on LED and 3-D television technologies, then its core competency (LCD technology) is soon going to become its core rigidity.

The dynamic capabilities perspective theory assumes that; new market preferences, new technologies, new cultural contexts, more competitive environments, environmental changes, etc., are continually changing and that businesses must adapt to these new situations in order to survive.