ADMS 1000 Chapter Notes - Chapter 7: Technological Forecasting And Social Change, Creative Destruction, Market Power

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Paulette Burgher

Document Summary

The introduction phase: new industries emerge, creating opportunities for entrepreneurs to develop innovative products or services. Lack of legitimacy can hinder the ability to recruit employees, obtain financial and material resources, sell products and services, and so on. Maturity phase: market stabilizes and sales grow more slowly, firms must become more efficient during this stage commoditization is process where differentiated good becomes undifferentiated in the market. Last phase in the industry life-cycle model, where aggregate sales drop and rivalry further heats up. Industry sales decline because of: changes in demographics, shifting consumer tastes and needs, and technological substitutions. Types of technology: radical innovation is when new technical process or advancement marks a significant departure from existing practices; often create a whole new industry. Incremental innovations is making relatively minor improvements or modifications to an existing product or practice in hopes of differentiating it from competitors.