ADM 4316 Lecture Notes - Lecture 12: Diminishing Returns, Technological Change
19 Sep 2019
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> most importantly, firms can take steps to change a technologies trajectory through their own r&d activities (e. g. , ibm"s experience with disk drives as described by. Christensen is a good example to use here). With regard to whether and when a firm should adopt an innovation the answer rests on several interdependent criteria: 5. implement the innovation; and the innovations affect on competitive dynamics (e. g. the rate at which competitors will adopt the innovation). > often technology improvement trajectories are steeper than the trajectory of customer demands. > firms try to shift their sales into higher price tiers to maintain their margins. > as the price of the technology rises, the mass market may feel it is overpaying features it does not value. > the time needed for customers to learn about and assimilate new features may be greater than the time needed to develop new performance features. > each cycle begins with a period of rapid improvement.
