Analyse two ways technological change might impact on CP's decision to develop nanopaints.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2023). The mark or mark type is shown in brackets.

1. [1] Definition or explanation of technological change – in product design, production techniques or marketing, such as data collection, use of IT/AI.
2. [1] New product designs lead to company being known as an innovator.
3. [1] New processes may lead to greater efficiency in all areas of production and operations, including methods of distribution.
4. [1] Innovative marketing methods may lead to more effective customer relationship marketing (CRM).
5. [1] R&D into innovation and introduction of new technology is expensive.
6. [1] Firms who do not innovate are in danger of being forced out of the market.
7. [1] CP has a research and development centre.
8. [1] Recent history of new technology-based products – external paint, specialist paints, plastic/nanopaints.
9. [1] Production of new paints will be costly, due to innovative materials and processes.
10. [1] CP a leader in nanopaints and plastic paints.
11. [1] Competitors currently not producing these new paints but will do in future.
12. [1] Technology gives the new paints a USP.
13. [1] CP creates technological change by research – the nanopaint is a technological change.
14. [1] Paint industry has a history of new technological based products so important to keep producing these, to maintain market position.
15. [1] Keeping up with technological change will lead to innovative products, which will lead to higher sales and be an important factor in market success. However, may lead to more competition if competitors develop innovative products first, decreasing sales and market share.
16. [1] Research centre has produced new ideas so important to maintain confidence in research, in order to move the business forward and expand the paint range, leading to increased sales, market share and profit.
17. [1] Universities engage in research so market requires change and new products to avoid a company being left behind, but cost of new production line technology may make it uneconomic to go ahead even if the paint technology is good.
18. [1] The USP is likely to bring first mover advantage and commercial success.