Globalization trends
I don’t fully accept these as the next business trends, and I would like to point out that when Apex took on Sony these DVD players had already become ripened for commodity status. The author’s angle is misdirected and should have considered intellectual property as well as the capital that knowledge-workers wield.
As soon as new technology is launched, it is quickly turned into a commodity. Firms are increasingly looking to innovation to remain relevant. However, the return on these R&D investments is short-lived because companies/people innovate at a faster pace than collecting the riches. With the margins short-lived, the smartest way to recoup the cost of innovation is by licensing the technology. And no longer are firms farming their own products in-house (vertically), they look to others for focus on narrow portions of technology.
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