- Change in Complementary Assets - As the market changes with new products and services, the existing complementary assets can become obsolete (ie. training and sales staff on eletromechanical calculators example).
- Change in Customers - Customer needs evolve with technology and with new products and technologies, the set of customers also change (i.e. typesetting in offices replaced by word processors for all users -new market segments)
- Change in Competition - Competitors change as technology in the market place changes and new market niches emerge -new competition arises as well
The author stated three hurdles emerging technology must overcome:
- whether to invest in developing new technology
- using the investment to develop or acquire new technological capabilities
- commercializing the technology.
A great example of commercializing the technology is the shift from analog watches to digital watches. The analog watch was carefully crafted by the swiss until the introduction of liquid crystal displays and LED's for digital displays. The skilled staff to create the watches was no longer necessary as the manfacturing process to mass produce was farmed out all over the world and digital display watches began to outsell analogs because of cost. Many of the larger companies (Seiko, Casio) began watching the other manufactures and merged companies and products. The mass commercialization of watches could hit new markets because the watch become both affordable and available to all types of consumers. Information taken from "Swatch and the Global Industry" - http://eres.boisestate.edu.libproxy.boisestate.edu/eres/docs/10483/swatch_and_the_global_watch_industry.pdf
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