What we know for certain is that these tech companies engage in extensive research and development spending and are continually diversifying into new product markets.
Schumpeter is famous for coining the term "Creative destruction" to describe the process through which firms innovate to capture consumers, in turn achieving market share, only to be eventually usurped themselves.
In discussion about the tech giants, Apple's dominance in the U.S. mobile vendor market is often taken for granted.
Microsoft bought out Nokia in 2013, at a time when it had just 3 percent global market share and its market capitalization had fallen to a fifth of what it was in 2007.
As with modern tech companies, how one viewed iTunes' success depended on how one defined the market under discussion.
Despite Microsoft, Yahoo!, Tribal Voice, and iCast all developing their own services, network effects meant that the market tipped toward AOL's AIM. Other firms were greatly concerned by this: more than 40 companies asked the Federal Communications Commission to "Encourage" AOL to make its network compatible with others as a condition for approving its merger with Time Warner.
First, the predictions of unassailable market dominance that we hear in relation to today's tech giants, often explained by appeals to economic phenomena such as network effects, economies of scale, tying of products, or other cost barriers to entry, have been heard many times before in similar industries.
https://www.cato.org/publications/policy-analysis/time-different-schumpeter-tech-giants-monopoly-fatalism
Schumpeter is famous for coining the term "Creative destruction" to describe the process through which firms innovate to capture consumers, in turn achieving market share, only to be eventually usurped themselves.
In discussion about the tech giants, Apple's dominance in the U.S. mobile vendor market is often taken for granted.
Microsoft bought out Nokia in 2013, at a time when it had just 3 percent global market share and its market capitalization had fallen to a fifth of what it was in 2007.
As with modern tech companies, how one viewed iTunes' success depended on how one defined the market under discussion.
Despite Microsoft, Yahoo!, Tribal Voice, and iCast all developing their own services, network effects meant that the market tipped toward AOL's AIM. Other firms were greatly concerned by this: more than 40 companies asked the Federal Communications Commission to "Encourage" AOL to make its network compatible with others as a condition for approving its merger with Time Warner.
First, the predictions of unassailable market dominance that we hear in relation to today's tech giants, often explained by appeals to economic phenomena such as network effects, economies of scale, tying of products, or other cost barriers to entry, have been heard many times before in similar industries.
https://www.cato.org/publications/policy-analysis/time-different-schumpeter-tech-giants-monopoly-fatalism
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