What Companies Must Do Now That Better Is Also Cheaper

The European Business Review, November-December 2015, pp 4649

4 Pages Posted: 2 Jan 2016

See all articles by Paul Nunes

Paul Nunes

Accenture Institute for High Performance

Larry Downes

Larry Downes Consulting Group

Date Written: November 31, 2015

Abstract

A paradigm shift is occurring in the theory of disruptive innovation, as new "big bang" disruptors increasingly enter the market better and cheaper than offerings from long-time industry incumbents. This article review the four economic drivers of that shift: price deflation, platform exploitation, cross-subsidization, and marginal cost elimination.

Keywords: disruptive innovation, transaction costs, deflation, platforms, marginal costs, cross-subsidization

JEL Classification: D23, D24, D40, D51, O32, O33

Suggested Citation

Nunes, Paul and Downes, Larry, What Companies Must Do Now That Better Is Also Cheaper (November 31, 2015). The European Business Review, November-December 2015, pp 4649, Available at SSRN: https://ssrn.com/abstract=2709781

Paul Nunes

Accenture Institute for High Performance ( email )

800 Boylston Street
Suite 2300
Boston, MA Massachusetts 02199

Larry Downes (Contact Author)

Larry Downes Consulting Group ( email )

245 Willamette Ave
Kensington, CA 94708
United States

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