What Are The Downsides (dsadvantages) Of Investing In New Technology, Is A Good Business Strategy?

What are the downsides (dsadvantages) of investing in new technology, is a good business strategy?

Postby TiffanyJChen » 27 Jan 2011, 15:43

Picture this scenario: As a future stategy for an airline company, they decide to invest in technology, say the installation of Tv units (or anything thing u can think about) in the back of every seats, or a joint venture with a more famous airline say Singapore airlines, where bothairlines could work with each other and develop new technologies, new machinery, better service? Would those new strategy make sense in the external competitive environment? (i.e. what customers require, what competitors are doing, trends in the business environment)
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Re: What are the downsides (dsadvantages) of investing in new technology, is a good business strategy?

Postby Nessa » 27 Jan 2011, 15:52

I think so because I have spoken with many people who only fly on JetBlue airplanes for the exact reasons that you speak of; multimedia systems that keep them entertained over the course of long, boring flights. Sure, it costs an airline money to do this but when you consider the fact that some passengers will fly with your airline exclusively for the reason that you offer such systems, then it becomes a good investment. You really wouldn't be developing this technology with an airline, such as Singapore, because there are many different components manufacturers and suppliers that can already provide your airline with such technology. In other words, there are other companies that you can buy this stuff from, off the shelf, for each of your passenger seats. None of that is new technology, and these are standard options from both Boeing, Airbus, various aircraft interior refurbishers, corporate aircraft manufacturers, etc.
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