In this essay I will describe how a firm’s resources limit its search for opportunities. I will also provide two examples of how a firm’s resources may be limited by its opportunities. Firms may be limited by strengths and weaknesses of their available resources due to lack of one or more combinations of the following sources: production capabilities, cost(s) of research, marketing, management, and available or dedicated finances (Perreault, W.D, Cannon, J.P, & McCarthy, E.J., 2010). In order for a firm to determine if it has the resources to expand on new opportunities, they must have a variety the sources mentioned above. Firms must first establish the direction and what market(s) that they want to pursue and target (Perreault, W.D, et. al, 2010).
Once a firm has an idea of the targeted market and products/services they wish to offer they can move forward to the next step of establishing new opportunities. The first specific topic resource that may limit the search for new opportunities is marketing. If marketers for the firm do not target the right combination of prospective customers it can be a challenge to get a new firm to earn a reputable standing against pre existing and established firms. When a firm ventures out to expand or offer something totally new they have to prepare a variety of marketing. Marketing requires financial resources and research (Perreault, W.D, et. al, 2010).
The second specific topic resource that may limit the search for new opportunities is production capability. If companies don’t have the necessary finances to conduct research and development (R&D) on the product or services they wish to offer they may not get past the process of brainstorming (Perreault, W.D, et. al, 2010). A firm may also be limited to new opportunities if they cannot keep up with the demand of products (production) and/or services (Perreault, W.D, et. al, 2010).
Perreault, W.D, et. al,. (2010). Essentials of Marketing. New York, NY: McGraw-Hill/Irwin.
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