But this statement isnt entirely true while netwo rk

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Unformatted text preview: t he U. S. Video Game Cons ole Indus t ry, ” California Management Review, Sp ring 2003. This last no te is a critical po int to any newco mer wishing to attack an established rival. Winning custo mers away f ro m a do minant player in a netwo rk industry isn’t as easy as o f f ering a pro duct o r service that is better. Any pro duct that is inco mpatible with the do minant netwo rk has to exceed the value o f the technical f eatures o f the leading player, plus (since the newco mer likely starts witho ut any users o r third-party pro duct co mplements) the value o f the incumbent’s exchange, switching co st, and co mplementary pro duct benef it (see Figure 6.1). And the incumbent must no t be able to easily co py any o f the newco mer’s valuable new inno vatio ns; o therwise the do minant f irm will quickly match any valuable impro vements made by rivals. As such, t ech nological leapf rogging, o r co mpeting by o f f ering a superio r generatio n o f techno lo gy, can be really to ugh.M. Schilling, “Techno lo gical Leapf ro gging: Lesso ns f ro m the U.S. Video Game Co nso le Industry,” Califo rnia Management Rev iew , S...
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