The Dynamics of High-Technology Markets

This book analyzes how high-technology markets evolve through the use of a model which analyzes the dynamic interaction between producers and consumers. Fundamental to this is the concept of a package -- a base product and its associated complementary products. To help us understand how high-technology markets evolve we spend some time analyzing the behavior of the four types of high-technology consumers: technology enthusiasts, visionaries, pragmatists, and conservatives. Next, we examine the dynamic interaction between producers and consumers through introducing a model which shows how producers and consumers interact and "evolve" over time. Companies can choose to employ one (or a combination) of three basic strategies in building the best package. The aforementioned model is used to help determine which strategy to use for each type of high-technology consumer. Several cases are looked at to help elucidate the discussion, including Compaq personal computers, Sun workstations, and Microsoft operating systems. In short, this book can be used not only to help understand the dynamic evolution of high-technology markets but also as an aid in strategic decision making.