Chapter 7: Strategy and Technology

These flashcards cover key concepts related to strategy and technology as discussed in Chapter 7.

High-technology industries

Industries characterized by rapidly advancing scientific knowledge used in production.

Technical Standardization

A process where a set of technical specifications is adhered to by producers to create compatibility.

Dominant Design

A common set of features or design characteristics that becomes the standard in an industry.

Network Effects

The phenomenon where the demand for a product is affected by the number of users of that product.

First-Mover Advantage

Competitive advantages gained by a firm that is the first to enter a market with a new technology or product.

Killer Applications

Applications of a new technology that are so compelling that they lead to widespread adoption.

Law of Diminishing Returns

Economic principle stating that as production increases, the marginal gains from investment will eventually decrease.

Technological Paradigm Shifts

Significant changes in technology that revolutionize industry structures and competition.

Positive Feedback Loops

A cycle where an initial increase in demand results in further increases due to supporting products.

Complementary Assets

Assets required to exploit a new innovation effectively and gain competitive advantage.