Drawing the Line or Making Waves: Disruptive Technology & Competition

If someone asked you to take a look at the level of competition in the technology market, you would normally begin by grouping obvious competitors and customers. But you might get a more accurate answer if you started the other way around – first considering the factors of the competition which subsequently indicate rival market boundaries. INSEAD professors Ron Adner and Peter Zemsky propose a new model to do just that, specifically for disruptive technology. They juxtapose new and established technologies, explore the competitive relationship between the two, and provide some indications about how firms’ profit-maximizing behavior can shape competitive boundaries.

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