ADMS 1000 Lecture Notes - Lecture 7: Market Power, Dominant Design

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: John Paschakis

Document Summary

All industries evolve through specific phases from their early emergence and growth to their eventual maturity and decline. New industries emerge as the result of changes that create opportunities for entrepreneurs to leverage novel combinations of resources to develop innovative products, services, or processes. Types of costumers who tend to purchase in the introductory phase of the life cycle are early adopters willing to pay a premium for the privilege of owning a product before most other people. Shakeout natural process for an industry as it simply purges and weeds out the weaker competitors. Markets saturated degree at which the product is distributed within a market. Declining sales due to one or more of the following: changes in demographics, shifting consumer tastes, technological substitution. This allows the acquirer to enhance its market power and generate economies of scale to further reduce costs.