Information Industry
Off late dissemination of information has lead to business. Any sort of business is done through the diffusion of information among the mass. Every transaction is related to information. At present this industry is being considered as one of the most important economic sectors. Production and selling of information is happening at large nos. where organizations are minting billions of dollars through this process. Various products related to information dissemination are being sold like hot cakes. For example, movies, various other programs are being heavily invested by big production houses. These products are heavily funded and then they are being exposed to the target audience. Through this cycle the information products are earning money.
Another example is Google. Google as an organization first established themselves technologically. They have all the high end technology which an organization requires to compete with the other market leaders. Also, now when other companies come up with similar plans to establish themselves in the market, they are not able to do so. The reason being Google as a well established company uses its power to maintain dominance over them. This effort can be labelled as "Kronos effect. It states that the efforts undertaken by a dominant company to consume its potential successors in their infancy." It that reference it can be found that over a period of time Google has done many acquisitions where they have bought the patents of new technologies started by some small organizations.
Setting a short term profit helps an organization to win over its rivals. Whenever a new technology comes up, it faces a lot of obstruction from the existing technology prevalent in the market. However, over a period of time, the new technology win.
Creative Destruction
Creative Destruction describes the way in which capitalist economic development arises out of the destruction of some prior economic order.
Disruptive Innovation
A disruptive innovation is an innovation that helps to create a new market and value network, and eventually goes on to disrupt an existing market and value network displacing an earlier technology.
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