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Advantages Of Digital Innovators

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What makes Disruptors so Powerful
As mentioned earlier, the fewer entry barriers faced by digital disruptors give them a competitive advantage. Earlier competitors of traditional incumbent firms found it difficult to enter markets on account of inability to replicate distributional networks or access natural resources. The Baines limit pricing of keeping the price equal to marginal cost also posed a limit to entry of firms. With onset of digitalization, these challenges of entry barriers do not exist, as technology provides a cutting edge to the disruptors. The digital innovators are able to achieve economies of scale at a faster pace. The digital platforms once innovated, enables these disruptors to produce goods at almost zero marginal cost. The marginal cost of another E book copy or another user page on a …show more content…

Just as one issue has been identified the next comes up; a market is finally defined just in time to watch it morphing into something else. The main regulatory challenge is to provide a future-proof framework which maintains its relevance no matter how the market develops. Key words here are technology-neutrality and ex post rather than ex ante regulation. Competitive imbalances between traditional providers and new market players must be evaluated and, as far as necessary and possible, be reflected in new regulation. The governance problems raised by digital technologies threaten to further erode state autonomy, as non-state actors are empowered to resolve major societal disputes (Rosenau and Singh, 2002). Alongside facilitating the development of the communications market to the benefit of the country, the basic rights of individuals and society must also be protected by legal and regulatory measures. And a last, but vital, aspect of regulation is that it should provide the market players with business security – they must be able to understand and trust the framework in which they

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