Read e-book online Competition and Technological Change in the Television PDF

By Erik Arnold (auth.)

ISBN-10: 1349074926

ISBN-13: 9781349074921

ISBN-10: 1349074942

ISBN-13: 9781349074945

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Extra resources for Competition and Technological Change in the Television Industry: An Empirical Evaluation of Theories of the Firm

Sample text

1 ). He explains that: high market share, high-growth businesses are outstanding producers of earnings, although on balance they may absorb more cash than they generate (they are stars). High-share, low-growth businesses should be profitable and generate cash (they are cash cows). Low share, low growth businesses are often very dismal propositions, sometimes incapable of correction (they are dogs). Low-share, high growth businesses are a different story. The risks to which investments are subject are high, but if the firm's skills can be used to capture a relatively high share, then profits are proportionately great.

Therefore, changes in patterns of demand in response to a new product introduction may be explicable in characteristics terms but inexplicable in terms of pre-existing elasticities of substitution. To the extent that 'it introduces a natural metric on the closeness of goods' (Leland, 1977, p. 127), the characteristics approach has a clear advantage over the goods-level approach. 5 SUMMARY- A NEOCLASSICAL MODEL In neoclassical theory, the behaviour and rationality of the firm is synonymous with, and determined by, the rationality of the entrepreneur.

The most likely form of successful innovation, the typical barriers and enabling conditions, and appropriate management skills all tend to depend on the stage of development which the recipient process as reached. (1975, p. 389) Three stages are identified in the development of a productive segment: unconnected; segmental; and systemic. The model is variously articulated elsewhere by Abernathy and Utterback (Utterback and Abernathy, 1978). Mueller and Tilton provide a similar analysis involving four industry stages: 'innovation, imitation, technological competition, and standardisation'.

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Competition and Technological Change in the Television Industry: An Empirical Evaluation of Theories of the Firm by Erik Arnold (auth.)

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