![]() ![]() ![]() Records were replaced with tapes, CDs, DVDs, mp3s, and digital music stores. The music industry has undergone many changes in the last century. What is unfortunate about the Kodak story is that the company developed one of the first digital cameras but failed to capitalise on it. Where Kodak film cameras were replaced with digital cameras and to a lesser extent, smartphones. When the Ford Model T was released in 1908, improvements in horse-drawn transport were quickly superseded by a more innovative form of transport which has itself undergone many improvements in the last century.Ĭreative destruction has also occurred in the following industries: Photography The evolution of the transportation industry is a classic example of creative destruction at work.ĭuring the late 1800s and early 1900s, there were incremental improvements to horse-drawn transport which allowed it to dominate the market. As a result, many consider the dichotomous nature of creative destruction to be the “paradox of progress”. History has shown that any attempts to reduce the negative aspects of creative destruction by preserving jobs or protecting vulnerable industries simply delays the inevitable. A society cannot reap the rewards of growth and innovation without accepting that some individuals or businesses will suffer in the short or long term. This assumption contradicted the static mathematical models of traditional economic philosophies, which saw the balancing of supply with demand as the end goal of market processes.Īs the name suggests, there are winners and losers during creative destruction. From Schumpeter’s point of view, economic development was driven by the opportunity to seek profit with many dynamic market forces constantly reshaped or replaced by innovation and competition. Home PageĮssentially, the theory behind creative destruction argues that the market status quo must be destroyed to free up the resources and energy required to innovate.Digital Business Models Podcast by FourWeekMBA.Business Strategy Book Bundle By FourWeekMBA.An Entire MBA In Four Weeks By FourWeekMBA.100+ Business Models Book By FourWeekMBA. ![]()
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