Strategic implications of nanotechnology

Abstract

Purpose

Nanotechnology, the ability to manipulate materials on the atomic and molecular level, and thus create novel structures and materials, is at the forefront of a paradigm shift whose impact may equal or surpass that of computers and the internet. To cope with this new environment, companies will have to consider new business models, policies, and sources of competitive advantage.

Design/methodology/approach

In this article we examine nanotechnology's potential effect on business strategy, focusing on industry life cycles, strategic groups, environmental forces, and strategic implementation. Several companies involved in nanotechnology are examined, such as IBM, HP, SkyPharma, and Lucent Technologies.

Findings

Numerous conclusions can be inferred from our analyses. First, a company must formulate and execute a dynamic strategic approach to nanotechnology or suffer the consequences. Second, this approach must be reconciled with the strategic group to which the company strives. Third, firms will need to align their business strategies with the changing social, legal, and political forces in the new environment in order to compete successfully. Fourth, companies should leverage research and development efforts in nanotechnology to implement improvements in quality, efficiency, identity and the satisfaction of customer needs.

Practical implications

Companies and leaders alike must be prepared to explore this frontier prudently and strategically to make right decisions for their organizations' success.

Originality/value

Ultimately the article seeks to prompt an understanding of the truly significant potential of nanotechnology to revolutionize industries and businesses, and subsequently firms' strategic paradigms.

Citation

Kessler, E.H. and Charles, M. (2007), "Strategic implications of nanotechnology", Business Strategy Series, Vol. 8 No. 6, pp. 401-408. https://doi.org/10.1108/17515630710684619