The objective of a manager is to maximize the benefit of a firm. Virtual reality is a disruptive technology that can create comparative advantage. This means by conducting the VR technology firm gains slightly advantage than other competitors. A business manager is required to focus on the trend and development of VR technology while constantly innovate. In the perspective of an manager: anything need to be considered in both pros and cons. On one hand virtual reality is a brand new field of technology. It consist a wide range of use and creates a different market and platform for firms to build and benefit from. ( Inc, Rebekah Iliff, Dec 14, 2017) On the other hand disruptive technology constantly consist some undeveloped aspect. It is unarguable that VR system is not purchasable by most of the families. The cost of VR system is only a portion of cost, since the computer component that is required to run the system can cost multiple times than the original price. ( Dan Ackerman, June 15th 2016) This leads to restriction of certain business approach such as VR commercial. Even Though, Virtual Reality has huge room for development but currently it is considered as a new technology. Company need to make evaluation and precise analysis before deciding to conduct the VR system.
Advantages and Benefits
The early business adopters of VR will have an competitive advantage in the short run. For project planning, having a realistic model before starting operations will save time and potential errors. This will lead to increased operational efficiency which results in an increased rate of return for the project as a whole. For marketing, companies can provide users with a more intimate experience with the products advertised. Suggested by the developers at Oculus, this can range from everyday consumer goods, to “vehicles and real estate properties”. (Shuster 2014), all of which can be viewed in advance before purchasing in the comfort of the consumers workplace or homes.
Another benefit that VR brings for firms is employee connection. Employers can use VR to potentially close the gap between management and its subordinates. Employee training can be conducted through VR as if you are standing in front of the person watching, as well as realistic simulations of the workplace.
Disadvantages and Costs
There are still many challenges today for companies that want to utilize VR on a mass scale. In the marketing potentials of VR, the biggest current challenge would be the lack of the network effect created by the users of this technology. The initial cost for the adoption of VR will be expensive for most firms, due to high software development costs and the limited number of audience reached. According to a survey conducted by Statistica: “there are currently over 100 million users of VR around the world, 75% of which are from 18-35 years of age” (Statistica, 2016). This implies that although the market for VR is growing at a fast pace, older generations are slower at adopting such technologies. The majority of society’s wealth and resources are currently held by people over 35 years of age, therefore, if marketing through VR fails to reach this demographic, firms that operate V-commerce have yet to captivate its full potential. Another challenge faced by firms when trying to introduce VR into their business processes is the cost of acquiring the proper software that fits the exact needs of the company.
Virtual reality 