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
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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
The primary piece of legislation used to regulate telecom providers is the Telecommunication Act of 1996. This paper will examine the characteristics, and point out similarities, of telecommunications providers and information services such as the internet. Additionally, regulation of telecommunications and the lack of regulation for information services will be addressed. Finally, recommendations for potential ways to regulate information services, the potential legal ramifications of such regulation, and the technical considerations regarding the recommendations will be identified.
One month has to look at competition since the early 1990’s, especially since the act 1996 act. The most effective competition has come from technology evolution that enabled multiple platforms with different product-characteristics and economics to compete. They, in turn, then forced each other into cycles of further innovation. When the telecommunications act of 1996 has passed, there were hints of incipient competition in both the long-distance and video-distribution markets as a result of new technology. Local telephony was still essentially a monopoly. Although wireless was thriving, it was seen primarily as a purely mobile service.”
Electronic media content can be viewed differently according to personal opinions, but the First Amendment Rights of the United States Constitution lay the foundation for the legal system that is to be followed. These rights form a guide that help citizens have a stronger grasp on what is and isn’t acceptable within the eye of the law. Narrowing down to electronic media content, there has been a rise of tension involving first amendment rights of content regulations. The spectrum scarcity rationale has made it possible to control licensing schemes, along with direct content control to make sure rules are being followed according to the First Amendment. The differences between cable TV
Verizon’s business is most heavily influenced by the advancements in technology, but other industry changes and government decision making are other social issues changing Verizon. As previously discussed in the essay, Net Neutrality is a bill that projects the future of the telecommunications industry. In the case that it is protected it will prevent a monopoly of the internet which will benefit more than just consumers, but for Verizon the abolishment of the bill will mean opportunity to increase profits through selling the internet since it will no longer be a free utility (Maisto, 2014). Thus, the industries future profits lye on the decision of Net Neutrality.
Details: The internet has created new ways to do business for organizations with much less capital planning as opposed to the high capital needs of traditional brick and mortar organizations.
The issue of 1st amendment rights are critical subject in a Democracy such as America. For example, in the past countries like Nazi controlled Germany control media content to push out their extremist ideas and to squash any opposition content. That’s why government intervention is imperative to protect individual’s rights of free speech, freedom of press, and right to petition especially in relation to cable regulation. The best way to measure if government intervention in cable regulation is infringing upon citizens 1st amendment right is to focus on major consumer demands. The most appropriate goals to address the problem are to be able to please majority of consumers by implementing the perfect balance between autonomy and control when
With the continually changing methods of reporting information, such as the internet, regulators struggled with monitoring and controlling the information that people were providing. On August 12, 2008, FCC Commissioner Robert M. McDowell stated that the reinstitution of the Fairness Doctrine could be intertwined with the debate over network neutrality, a proposal to classify network operators as common carriers required to admit all Internet services applications and devices on equal terms, presenting a potential danger that net neutrality and Fairness Doctrine advocates could try to expand content controls on the Internet.(AuBuchon) The has always been mixed emotions with the public’s opinions on this issue, but with rapid increase in technologies it would possible that any viewpoint could be aired through the many types of communication available to everyone, and go
With the expansion of digital and online marketplaces, the FCC’s responsibility to promote free market principles and business has never been more important. The order goes on to describe how it will use its’ legal authority to promote free market expansion, “We marshal all of these sources of authority toward a common statutorily-supported goal: to protect and promote Internet openness as platform for competition, free expression and innovation; a driver of economic growth; and an engine of the virtuous cycle of broadband deployment” (FCC, 120). By promoting open internet and the virtuous cycle, business and digital marketplaces have a secure and reliable medium to buy and sell goods, and promote business and other start-ups. The commission’s legal authority is derived from section 706 (FCC, 121). The order also aims at modernizing Title II, an act that helps promote investment and business activity (FCC,
In the article, “Net neutrality hits a nerve, eliciting intense reactions”, Cecilia Kang discusses how the pending repeal of Net Neutrality by the FCC and Chairman, Ajit Pai, is adamantly contested by most of the Internet community and most companies, big or small. To develop her argument, Kang uses a wide variety of appeals from established and startup companies, statistics and evidence related to the reaction to the repeal, and demonstrations on how polarizing the issue is, and the repeal’s effect on solving the problem of Internet regulation. Kang cites a multitude of Internet-based companies or organizations, such as Mozilla, Google, Netflix, and Free Press, to demonstrate their concern and clarify their resentment of the repeal. For instance, Google and Netflix argued that “telecom companies should not be able to split sites because that would allow them to become a sort of gatekeeper.” These responses better clarify companies’ concerns about the repeal and its effect on their business, while also aiding Kang in developing her article on explaining the concern and the response it has elicited. According to Kang,
With the rapid development of information technology, the world is increasingly connected and the gap between companies and consumers is shrinking. Meanwhile, with a
Regulation of the Internet is a volatile topic. One reason comes from the very nature of the Internet. While not entirely different from
“In the earliest phases of its build out; however, an infrastructural technology can take the form of a proprietary technology. As long as access to the technology is restricted—through physical limitations, intellectual property rights, high costs, or a lack of standards—a company can use it to gain advantages over rivals.” As Laura Acevedo notates in her article Business Benefits of Information Technology, “Companies using a first-movers strategy can use information technology to create new products, distance their products from the existing market or enhance their customer services. Companies that follow a low-cost product strategy can look to information technology solutions to reduce their costs through increased productivity and reduced need for employee overhead.” The contention is that once a technology has evolved from being considered a proprietary technology into an infrastructural technology then the differentiation from one company to the next is inevitably lost.
It was concluded in this study that extreme control over the Internet will only disadvantage a country. Besides keeping the information technology sector out of date, the economy will not grow to its
The case study of “Disruptive Innovation” is a studying that concentrated and described an innovation as the affordable price products for people in the entire world to use. This research indicated about certain disruptive innovations such as the laptops, the routers, smartphones or desktop photocopier that are the substitutions for other companies’ commodities. Furthermore, Porter five forces strategy is a structure to examine the level of competition in today’s market and to make an improvement for the business strategy. Likewise, these forces are including: the threat of new entrants, when suppliers have power, when customers have power, the threats of substitutes and intensity of competitive rivalry. Therefore, this report was assigned to analyze Porter’s five forces strategy for applying toward the case of disruptive innovations and demonstrating on how it affects or relates to most of the companies worldwide.
The business world continues to change dramatically as new technologies are invented. Organizations and businesses are experiencing waves of technological change and innovation and the process. Thus, management strategies of the organizations have to be altered to match the new technologies if businesses are to remain competitive and active in the market place. Digital disruption can be defined as the changes that take place when new technologies and business models affect the promise of value to be delivered by existing goods and services (McQuivey 2015). Change experienced in information and communication technology cannot be assumed as this greatly affects business governance and business models. It is indisputable that business and organizations are facing imminent and major digital disruptions and it is important for each organization to understand the issues raised by digital disruption to be able to develop specific, pragmatic, and proportional responses (Deloitte 2015). This research seeks to show how digital disruption impacts business governance and how it opens unprecedented business opportunities and possibilities. The report shows how the innovations accompanying digital disruption changes economies and markets and how they reinvent relationships between organizations, suppliers and customers.