![]() Furthermore, the contributions of the global financing crisis on the devaluation of the various forecasts of the experts are significant especially regarding the stability of the corporate shares. Consequently, the firms tend to experience challenges in the making of the long-term predictions regarding some of the factors crucial for its steady growth. Sustaining the competition usually forces the companies to experience pragmatic drive by profit making objectives and the focus on their rapid growth. Thus, there is no competition in the market for a particular period.Schumpeter’s definition of creative destruction and Christensen’s idea of disruptive innovation Thus, other person cannot use the new invention. Patent right protect the inventors from copying the invention. Patent right slow down the creative destruction: Hence, patent right speeds up the process of creative destruction. Thus, firms are interested to invent new things that would increase their profit. It facilitates the innovative firm to earn more profit. Patent right protects the inventors from copying the invention. Patent right speeds up the creative destruction: As a result, typist lost job and the typewriter machine became outdated product in the market. In recent years, computer and laptops has taken the place of typewriters. In 1800, ships, wagons and barges were the only available transport, but improvement in technology could innovate and brought railroads and airplanes into exist. The creation of new product is beneficial for the society to an extent, but it may also lead to loss in jobs, businesses and industries as it needs new skill and technology. The same way, DVD market was destroyed by the invention of large storage devices such as pen derives.įirms do try to bring some innovation in the existing products in order to maximize their profit as result, importance of the existing product reduced. ![]() The old firms are quiet from the business due to the new product and technologies.Įxample, The market for CD was destroyed by the invention of higher capacity DVD. Creative destruction refers to the action that destroys the market for old technology by the new technology. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
March 2023
Categories |