BU111 Lecture 18: BU111 - Lecture 18 - Technological Factors Continued
19
BU111 Full Course Notes
Verified Note
19 documents
Document Summary
Bu111 - lecture 18 - technological factors (continued) Technology standards - when different pieces have to connect to create greater value for each other. Lock-in - size of investment (not just dollars, could be time and learning) Entry barrier; makes lock-in worse (bigger the investment, harder it is to switch) Solution: lower switching costs, offer leap in performance. Presents improvements to existing products in expected ways. Provides mainstream, high-margin customers with enhancements in product functionality. Presents a different package of performance attributes that aren"t initially valued by mainstream customers (starts in peripheral markets) Gains foothold in lower performance segment, improves technology rapidly until they meet mainstream performance needs, then enter these markets.
