SOSC 2340: Essay on Nature of Corporate Power and Industry Structure

This essay delves into the nature of corporate power and industry structure, drawing insights from the works of Davis, Barwise, and Watkins. It explores the transformations in corporate power, highlighting the rise of mega-firms and the increasing relevance of digital dominance. The essay examines key concepts such as Nikefication, analyzing how outsourcing and digital technologies are reshaping corporate landscapes. It also discusses the strategies employed by tech giants like Apple, Amazon, Google, and Microsoft, emphasizing their focus on data accumulation and proprietary standards. The analysis further includes an examination of the impact of digital dominance on industries, focusing on how companies are leveraging technology to meet customer needs and gain a competitive edge. The essay concludes by emphasizing the importance of digital transformation for companies to adapt to the complex business environment and to meet customer expectations.

Running head: NATURE OF CORPORATE POWER AND INDUSTRY STRUCTURE
Nature of corporate power and industry structure
Name of the student:
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Introduction
In the present scenario the wheels of the worldwide economy lies in the hands of the various
corporal structures of the world. Ever-larger, Ever-smaller and ever-richer corporations around
the globe has seen an increase in their structural power (Datta, Iskandar-Datta & Singh, 2013). In
between the rise of the superstar companies and the various mega-firms around the world there is
a surge in the corporate and monopolization. The International Monetary Fund has also sounded
an alarm about the rise of the corporate power in smaller organizations. Corporate power is
defined as the authority and the power which is stated by any kind of business entity
(Whittington, 2014). The corporate power is controlled under the various government
documentation and the applicable laws of the country. A company accomplishes its business and
expresses its purposes by the help of its corporate power. The corporate power is bound by the
help of various jurisdiction codes of the various corporations (Rugman & Verbeke, 2017). Being
a separate entity a company holds the right of expressing its various powers to the world and also
appoint the various officers, make new contracts, adopt different bylaws and also possesses the
power to own different property and convert them into their desired business structures (Rugman
& Verbeke, 2017).
Key transformations highlighted by Davis
In his work Davis has shown the various ideas incorporating the role played by corporate
power in the United States in the last 100 years. Due to the increase in the scale of the economics
the presence and the effect of the various corporations was unavoidable (Datta, Iskandar-Datta &
Singh, 2013). During the 1930s it has been seen that the corporations around United states has
been set up keeping in mind the market conditions and they consisted of professional managers
whose only goal was to grow in the present time and the corporations were even vertically

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integrated and were even insulated from the various effects which it could face from the various
demands of the dispersed owners of the corporations (Datta, Iskandar-Datta & Singh, 2013). The
executives of the various corporations around the world have been known to be very powerful
but were also characterized as benign (Carroll, 2013). During the past the shareholders of
corporation around the United States were considered to be non-existent and were not given
much importance unlike present time (Carroll, 2013). This model of the corporations have been
blindly followed from the 1930s till 1980s. After the 1980s there were much changes in the
corporate structures around the different forms all over the country (Hodson, 2014). The
shareholders and the stakeholders 0of the company were given much importance like at present
time (Hodson, 2014). The outsourcing movement which happened during the 1990s paved the
way for the various lean and mean corporations around the world (Hawn & Kang, 2013).
One of the most surprising result which has been seen in the present scenario of corporate
power by the author is that the presence of various corporation around the country is becoming
increasingly irrelevant (Hawn & Kang, 2013). The total number of public corporations around
the world are becoming less and less as the time is moving on. It has been seen that since 1997
the number of public corporations around the country are slowly decreasing. The author
identifies that corporate power in the 21st century the corporate power mainly comes from the
various giant corporate offices which are holding a respectable position in the corporate industry
(Fan, Wong & Zhang, 2013). The author states that both the corporate power and political power
consist of tendency of centripetal inherency (Fan, Wong & Zhang, 2013).
Key transformations highlighted by Barwise and Watkins
Both the authors has pointed out that the giant companies in get corporate business has
been operating by the aim of “winner takes it all” (Davis & Zboralska, 2018). The main

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strategies which are followed by Apple, IBM, Amazon, Google and Microsoft are creation of the
various proprietary standards by the help of which they will be able to gather the various
quantities of data which will be required to stay ahead of their competitors (Davis & Zboralska,
2018). The corporate power which has been depicted by these companies are huge and the small
companies and various public corporations are slowly perishing (Barwise & Watkins, 2018). The
industry entirely depends on the power of the various giant corporations which has been making
their stand in the industry and does not give any kind of scope for the newcomers to the market
to establish themselves. In the present scenario of corporate structure it has been seen that new
entrants in the market are no competition for the tech giants around the world and they barely get
any chance to show their corporate powers (van Dijck, Nieborg & Poell, 2019).
Barwise has identified that iPod, iPhone or IPad were not the first products in the
required category rather they are those products which met the needs of the users and hence it
put up such a dominance in the market (van Dijck, Nieborg & Poell, 2019). Meeting the specific
needs of the users is the main motto of the present established company. Innovation in the
technology has been seen to rise in the present scenario but also innovation must be done
keeping in mind the various needs of the customers (van Dijck, Nieborg & Poell, 2019). If the
customer does not feel the need of the having a certain product then it will be hampering the sale
of the product. Companies like amazon, Apple or Microsoft are constantly pushing their limits
and are producing newer products every year which are meeting the various needs of the
customers and hence they are dominating the market (van Dijck, Nieborg & Poell, 2019).
Although Apple is one of the most established company in the world yet it is looking forward to
bring out new products for its customers (Hodson, 2014).

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Analysis of Nikefication and Digital Dominance in both the Articles
As per Davis, he has commented that Nikefication is considered to be the outsourcing of
the production as well as distribution. In the concept of Nikefication, the traditional control of
production as well as distribution is contracted out to other companies. For instance- Apple Inc,
which produces the computers in China through the Chinese organization. The concept of
Nikefication are fundamentally changing the shape of the companies wherein it is creating high
impact on the corporate firms and there are two widespread results of the Nikefication which
includes the following:
Firstly, the different corporations employ very few people directly than they used to with
the exception provided to the different retailers. On the other hand, the new entrants can be
rapidly scaling up or down through the usage of the existing base of the different generic
producers which helps in eroding the different advantages of the large incumbents. As per the
concept of Nikefication, the main approach which has been analyzed is the fact that the aspect is
increasing in the different number of sectors, the different public corporation is largely obsolete
as the economic vehicle (Steensen et al., 2019). With the help of Nikefication, the respective
analysis which can be gained is the fact that as the companies are becoming large in size, they do
not have the capability to handle the different operations successfully and appropriately and in
such scenario, the main aspect which needs to be incorporated is the fact that companies need to
create such aspects which will be making them go longer in the coming scenarios. Nikefication
enhances the performance of the companies through outsourcing the minor activities for their
sustainable growth (Shadrach, 2020).
On the other hand, the digital dominance has been analyzed by the Martin Moore and
Damian Tambini wherein there are three steps which needs to be followed for managing the

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effectiveness. The plenty of communications service providers are talking regarding the
managing of transitions for offering the digital services. There are different strategies which
needs to be based on the individual technology and requirements of customers which needs to be
considered. The other aspect which needs to be considered is the digital transformation which
will be empowering the consumers with the choice as well as convenience (Huang & Hong,
2017).
The authors have been successful in making the audiences understand the digital
dominance have increased and it creates high effectiveness in creating propositions. The CSPs
deploy the different technology which enable them in rapidly offering the personalized data
packages which will be suitable for fitting the needs of different customers. The CSPs can
capture the market share through focusing on protecting the network from usage which was
tough for effectively monetizing and make it useful for the customers both in real time and
benefitting the effectiveness in the growth of the firm (Gond & Nyberg, 2017).
Through the digital dominance, it is suitable for the companies in increasing profit as
there is lot of innovations which are bring brought and manage the effectiveness of the services
which are delivered by them. In the fast-changing business environment, the different energy and
the software companies are needed for adopting new type of operating models which will be
effective in creating growth opportunities (Chen, 2018). With the help of the digital dominance
and technology, it helps in designing along with implementing the large-scale change related
programs which will be enhancing the effectiveness and increase the overall flexibility along
with transforming the progress in a suitable manner.
Through digital dominance, it will be creating revitalizing the organizations successfully
for development of the transformation program which will be capable of meeting the different

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needs of the companies successfully. There is different software which are used by Google or
Apple that enhances the business to succeed in the market in the competitive market through
developing the different capabilities and transforming the overall performance successfully. The
customer service can be improved with the help of the digital dominance in the different tasks
which are being performed wherein the main approach which has been noticed is related to the
innovations in the retailing or the software businesses that will be capable of handling the
effectiveness in a progressive manner (Broeders & Taylor, 2017).
Conclusion
Therefore, from the entire analysis of Nikefication as well as digital dominance, the main
approach which have been analyzed is the fact that in the current scenario of the complex
business environment, it has been noticed that the digital transformation is the key element.
Through the innovations in the digital transformation related services, the companies can be
successful in delivering the different approaches which will be effective in managing the
grievances of the customers. Through the customer-oriented effort, the company can be helpful
in improving the acquisition of customers and retention which will be increasing the satisfaction
among customers that will be effective in growth and prospects of the company.
From the example of Amazon and Google, the most effective instance which can be gained is the
fact that these companies use the different software related technologies which will be impacting
their growth and they are becoming more capable in managing the different needs of the
customers successfully. As there is high level of competition in the entire business market, the
first and foremost aspect which needs to be taken care is the application of the technological
innovations as it will be enhancing the growth and other efficiencies of the companies that will
make them capable of understanding the appropriateness successfully.

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Reference List
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Chen, S. (2018). Multinational corporate power, influence and responsibility in global supply
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