By BubbleBustInvesting:Of all characteristics that sets the high technology industry apart from other industries, one stands out: The rapid creative destruction of high technology businesses, especially on the hardware side -- the rise of new more efficient and more effective devices that quickly replace old devices, turning winners into losers, and losers into winners.
Research 2.0 submits:
It’s hard to fathom what the two-day e-G8 meeting in Paris, which starts tomorrow, will offer us. It’s received only minimal coverage, despite the fact that the attendees include such high-profile people as Jeff Bezos, Eric Schmidt and Jimmy Wales, along with scores of other technology company managers, entrepreneurs, political leaders and journalists.
By George Kesarios:Joseph Schumpeter was an Austrian-American economist and is considered to be one of the most influential economists of the 20th century. Schumpeter is credited with popularizing the term "creative destruction" in economics.
By David Knox Barker:In "Capitalism, Socialism and Democracy," Joseph Schumpeter coined the term "Creative Destruction" to explain the capitalist process of innovation. Innovation is continually disrupting and transforming companies, industries and entire global economies built on the demands, risks and rewards of international free market capitalism.
Cullen Roche submits: Joseph Schumpeter is famous for coining the phrase “creative destruction”. He described it as a “process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” This is a necessary component of capitalism. The strong survive and the weak die.
Businesses can avoid creative destruction. Leaders, and investors, need to pay more attention to trends and invest in market shifts rather than trying to defend and extend outdated businesses. Creative destruction is not an investment philosophy, nor an inevitable outcome. Any business can grow if it focuses externally and makes the right investment decisions.
Rochester-based Eastman Kodak has been around since 1894, and was a blue-chip Dow Jones Industrial Average stock from 1930-2004. The company has been on the annual Fortune 500 list of America's largest companies every year since the rankings started in 1955. But the company hasn't turned a profit since 2007, and is now on the verge of filing for bankruptcy, according to an article in today's Wall Street Journal.