Firms that are not technology oriented must develop new capabilities to survive. For example, when Amazon.com changed the face of e-retailing in the 1990s, traditional brick-and-mortar bookstores had to adapt quickly. To regain competitiveness, they had to ________, which wasn't always easy for them to do.
A) bolster their information technology capabilities
B) eliminate all books from their product mix
C) build more stores
D) hire more sales staff
E) pay higher salaries to their employees

Question

Quizplus · Accepted Answer

To compete with Amazon, traditional bookstores needed to develop stronger information technology capabilities to offer online ordering, customer data tracking, and other e-commerce functions. Eliminating books from their product mix, building more stores, hiring more sales staff, or paying higher salaries would not directly address the competitive threat posed by Amazon's technological innovation.

Firms That Are Not Technology Oriented Must Develop New Capabilities