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New industries and their competitors

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You work for a very small company that has the leading position in an embryonic market. Your boss thinks that the company's future is ensured because it has a sixty percent share of the market, the lowest cost structure in the industry, and the most reliable and highest valued product. Providean explanation outlining why his assumptions might be incorrect.

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Solution Summary

This solution explains the situation of an important competitor in a new industry that is just developing.

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Embryonic markets are markets which just developed. For example, water desalination (to deal with present and expected shortages of water in the future), solar technology (though it might be slightly more established now), the market for household cleaning robots, voice recognition software that can answer correctly to questions, etc. These face a lot of initial ...

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