How does creative destruction/accumulation relate to Porter's Five Forces?.
Creative destruction/accumulation relates to Michael Porter's Five Forces in more ways than one. Indeed, Porter's Five Forces model of pure competition suggest competition between existing firms, supplier power, customer power, the threat of substitutes, and the threat of new entrants (Shane, 2009, pp. 251-253). Also, Porter's Five Forces implies that developing an edge over rival firms can better recognize the industry competition in which the firm functions. Although creative destruction entails how new technologies can be damaging to industries however it keeps innovation flowing. Similarly, creative destruction suggests entrepreneurs enter with new firms; challenge reputable firms on the basis of new ideas; interrupt the old ways of production, organization, and distribution; and replace the old firm (Shane, 2009, pp. 254-255). Creative accumulation is when incumbent firms introduce innovations by means of a method of radical consolidation of their technological capabilities along well-established technological routes (Shane, 2009, pp. 254-255). Moreover, creative destruction/accumulation and Porter's Five Forces implies that breakthrough inventions should provoke and promote growth through expenditure. .
How do technical standards evolve, what are the various tactics that can be used to help win a standards battle and why is the dominant design not always the best technology?.
Technical standards establish the norm for technical systems in which they ensure that different components of the same system are compatible. Technical standards evolve due to coincidence because one technology is greater compared to another, government mandate, the strategic approach that companies take on, the installed base of one technology being far ahead of the installed base of others, or industry trade associations setting them (Shane, 2009, pp.
