Strategies for Converting to New Technologies Computer Graphics in the Color P

Cover Strategies for Converting to New Technologies Computer Graphics in the Color P
Strategies for Converting to New Technologies Computer Graphics in the Color P
Alan Graham
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By the middle of the simulation, the cost of electronic color systems is dropping (as modeled in the equipment market sector) and the number of installations is increasing exponentially. There is a period from month 40 to month 80 when the digital production cost has dropped substantially, but price has not; converting to the new technology during this period shows D-3411-2 17 promise for high profitability. But when the fraction of jobs done digitally approaches its maximum, which it reaches b
...y month 80, excess capacity begins to spread throughout the industry.
This initiates pressures causing price cutting and shakeouts that are prevalent in many industries. Since firms cannot remain cost-competitive without the new technology, many remaining firms convert even after excess capacity pervades the industry. As more firms convert, excess capacity gets worse, increasing pressures to cut price, which in turn pressures the remaining firms to convert. This positive feedback loop is exacerbated by the long delays from the decision to convert, to ordering, delivery, and finally to bringing new equipment up to full capacity.


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