Sustainability of Competitive Advantage

Abstract

A discontinuous technological innovation destroy the existing technological systems and alter the regular competitive balance even in a stable mature industry. In the color TV set industry, a discontinuous technological change from vacuum tubes to transistors and ICs was observed in the 1970’s. The effect of a discontinuous change in the color TV set industry is analyzed through comparative study of Japanese and American firms.

Keywords

• discontinuous technological change
• refraction of experience curve
• color tv
• homogeneous competitive behavior