Question
In: Economics
Identify a product that has gone away (like horse and buggy) and identify its current replacement...
Identify a product that has gone away (like horse and buggy) and identify its current replacement (automobile). Discuss in detail why the market (made up of consumer and business buyers AND other sellers) has pushed out the old product and brought in the current replacement - consider/identify/discuss the "features," "attributes," and "benefits" (FAB) of the current replacement product that provide GREATER utility than the FAB delivered by the old product. For the product that is the current replacement, also forecast a PRACTICAL scenario where this product will eventually become the victim of creative destruction and describe the product that will replace it in the future.
Solutions
Expert Solution
Let us take the case of 'Horse driven carriage' and 'Petrol run car'
Old Product- Horse Carriage
New Product- Car
Why did the 'Horse Carriage' get discontinued and 'Cars' get accepted-
- High- maintenance (cost of taking care of the horses) as compared to a car.
- Risk of horses to slip during rains and snowfall
- Construction of properly paved roads led to the invention of trams and cars.
- Time taken to reach a destination by horse was more than what it took to reach by car.
FAB-
| FAB | HORSE CARRIAGE (OLD PRODUCT ) | CAR (NEW PRODUCT) |
| Features |
|
|
| Attributes (Advantages) |
|
|
| Benefits |
|
|
Product be which the 'Car' will get 'replaced'-
The current petrol and diesel run cars are most likely to get replaced by 'Electric and Battery run cars.'
Electric and battery run cars have the following advantages over the current cars-
- Battery or electricity run making it cost-efficient.
- Easy to drive
- Easy to maintain
- Takes less space on road
- Less pollution
---------------------------------
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