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Cheap development: expensive reaction

The rapid product development cycle and low cost to market of the New Technological Corporation may be turned against conventional competitors who can be forced to spend proportionally far more of their resources to respond. Even though only a fraction of the product introductions by a New Technological Corporation may be ultimately successful, if responding to them consumes resources that competitors might otherwise have spent on effective head-to-head competition, the company may still benefit substantially.

Conversely, nimble and inexpensive reaction can help a New Technological Corporation negate or minimise the impact of product introductions which cost a hardware-dependent competitor much more time and capital to deploy, and upon which, therefore, the competitor is much more dependent for survival in the marketplace.

Editor: John Walker