Question

1. In an industry working through the dominant design dynamic, it is unlikely that any one firm will enjoy a considerable cost advantage prior to the emergence of a dominant design. True or False? Explain why? (Word Count: 150)

Answer 1

Case Specifics and Explanation:-

A dominant design dynamic here refers to higher value addition in the same cost which adds an advantage to the overall firm. Most industries today, face stiff competition and have the need to implement design changes to have a significant gain over competition which otherwise may replicate production techniques and marketing efforts and take up market share.

The basis of design differentiation is innovation which may lead to a situation that the company develops new techniques or methods of production because of which the costs may get lowered.

Unless this happens, competitors in highly competitive market environments replicate the overall experience provided by rivals and eat up market share. Hence, most experts of the matter suggest constant innovation for emergence of a dominant design which can help in having a considerable cost advantage to the home company.

Final Answer:-

Therefore, the following statement is true.

In an industry working through the dominant design dynamic, it is unlikely that any one firm will enjoy a considerable cost advantage prior to the emergence of a dominant design.

Please feel free to ask your doubts in the comments section if any.