A new technology is most likely to be successful in displacing an existing technology when:
A) its installed base is significantly less than that of the existing technology.
B) the new technology competes only on the value of its stand-alone utility.
C) it eclipses the combined value of the existing technology's stand-alone utility, its installed base, and its complementary goods.
D) the new technology's perceived and anticipated components of value are lower than its actual components of value.

Question

Quizplus · Accepted Answer

The new technology must be able to provide greater value than the existing technology and its complementary goods combined, in order to incentivize customers to switch over. The installed base can be a hindrance, but it is not the most important factor. Competing only on stand-alone utility may not be enough to displace an existing technology. Perceived and anticipated components of value are also not as important as actual components of value.

A New Technology Is Most Likely to Be Successful in Displacing