Case ID: CMR253     Solution ID: 32051

Technological Leapfrogging Case Solution

Abstract

In businesses portrayed by system externalities, the self-fortifying impacts of introduced base and the accessibility of reciprocal merchandise can prompt to a solitary (or few) firm(s) controlling about the majority of the piece of the pie in an item classification. Another contestant may endeavor to dislodge the officeholder standard by presenting a profoundly enhanced innovation, leapfrogging the present era. Be that as it may, a mechanical favorable position alone is frequently insufficient. To bait clients far from the current standard, the new innovation should by one means or another yield more esteem than the mix of significant worth yielded by the officeholder innovation's usefulness, introduced base, and integral merchandise. This article builds up a multidimensional structure of innovation esteem segments, which is then connected to information from contextual investigations of three eras of rivalry in the U.S. computer game industry. The article presents both methodologies a potential participant can use to effectively jump an occupant and procedures an officeholder can use to protect its position.


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