MARKET 1 Lecture Notes - Lecture 6: Disruptive Innovation, Market Power, Long Tail
Document Summary
Chapter 7 business strategy: innovation and strategic entrepreneurship. Innovation: the commercialization of any new product, process, or idea or the modification and recombination of existing ones. To drive growth, innovation also needs to be useful and successfully implemented. Industry life cycle: introduction, growth, maturity and decline. Innovation may lead to the birth of a new industry. Core competency: r&d. capital-intensive process premium price. High barrier of entry few innovators in the market. Goal: achieve market acceptance leverage network effects: the positive effect that one user of a product or service has on the value of that product for other users (value of the product increases with the number of users) Standard/ dominant design: an agreed-upon solution about a common set of engineering features and design choices captures larger market share. Technological uncertainties were overcome barriers of entry fall many new firms participate in the growth opportunity.
