ADMS 1000 Lecture Notes - Lecture 8: Videotelephony, Playstation 3, Dominant Design

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Natalie Guriel

Document Summary

New industries emerge as the result of changes (usually technological e. g. self-driving cars or regulatory e. g. legalization of weed) that create opportunities for entrepreneurs. Many small competitors initially (everyone wants to partake in new market) with varying designs. Large amounts of r&d high degree of innovation. Customers willing to pay a premium e. g. oled tvs, ps3, nintendo switch, Begins when market settles down on a dominant design or approach. Economies of scale (mass production) price lowering growing sales. Despite the exit of unsuccessful firms and high competition from the remaining firms, many new entrants join the market because of the high growth and potential for gainzz. Growth and demand plateaus and begins to decline. Markets become saturated competition intensifies price wars: advertising key. Incremental improvements (e. g. new and improved) to differentiate firms" products. Sales begin to fall due to: changing demographics, shifting consumer tastes, technological substitution. Focus on managing decline (see below) e. g. telephones, vcr, newspaper.