SGMT 3000 Chapter Notes - Chapter 7: Disruptive Innovation, Customer Switching, Diminishing Returns

• School: York University
• Department: Strategic Management
• Course: SGMT 3000
• Professor: T B A

Document Summary

Winner-takes-all market: technology with initial advantage can reach a position that is insurmountable; occurs where standards and compatibility are important strategic levers; very unique strategies needed to succeed in such markets. Technology: the body of scientific knowledge used in the production of goods or services; causing substantial growth in the economy. Dominant design: common set of features or design characteristics. Public domain: when government or industry association sets standards; any company can freely incorporate the knowledge and technology into their products. Market demand: fundamental to promote technological standard through strategy and business model; standard should be protected by patents and copyrights; standard becomes a source of sustained competitive advantage, can lead to superior profits. Network effects: deters standard establishment when it is set by competition; network of complementary products deterring the demand for an industry"s product. Positive feedback: as complementary products grow in network size, demand for the industry"s product increases as well.