Module 5 Blog Post on Red
Queens and Increasing Returns
In knowledge-based companies, opposing companies
compete in winner-takes-all markets. Arthur (1996) states that active managers
that want Increasing Returns watch for the next wave of technology that is coming.
They work towards figuring out what shape it will take, and the position their company
will take to gain an advantage. As related technologies emerge, competition may
occur between two new emerging technologies. Thornburg (Laureate Education,
2014e) points out that with Increasing Returns, by chance – one technology gets
locked in and drives the other technology into extinction. An example of
Increasing Returns is the battle between Panasonic VHS video tapes and Sony
Betamax video tapes. Betamax video tapes give a higher quality picture in comparison
to VHS video tapes. However, Panasonic at the time was able to provide available
software and pre-recorded videos that were more cost effective at the time. As
a result, the Panasonic VHS video format obsoletes the Sony Betamax video format.
Thornburg (Laureate Education, 2014e) states that the concept of “Increasing
Returns” comes from a branch of mathematics known as Chaos and Complexity
Theory. Theorists can apply mathematical equations to help explain the emergence
of new technologies. Emerging technologies do not follow a linear process. The process
is always nonlinear.
The Red Queen is a result of the two
technologies competing against each other. Thornburg (2013d) says that with the
Red Queen, the two competitive technologies compete at such a rapid pace. Both
technologies start running as fast as they can, yet, no matter how fast they
run; they seem to be staying in the same place. The concept of the Red Queen
reigns from Lewis Carroll’s (1946) novel Through
the Looking Glass.
In Module 4, the
assignment was to obtain a science fiction movie – identify, and characterize
the different technologies. Fortunately, I was able to find my DVD copy of the
movie Star Trek into Darkness (2013).
There is a current competition in the video industry between DVDs and
video-on-demand. The two competitors are an example of a Red Queen rivalry.
Thornburg
(2013e) examines Marshall McLuhan’s Laws of Media, which impact the nature of
new and emerging technologies. There are many consumers that wish to own and
buy DVDs. DVDs enhance the ability for
consumers to watch videos through both DVD players and computers. DVDs obsolete
the use of video cassette players. DVDs also rekindle the experience of
families selecting a program to watch together. DVD sales can also reverse to
video-on-demand.
Video-on-demand
enhances a consumer’s video rental experience. Consumers can use their TV and
cable remotes to rent or buy a video they wish to see. Video-on-demand also
obsoletes video outlet stores such as Blockbuster. Now, consumers do rent
movies through Red Box at their local retail stores. Video-on-demand can one
day obsolete the purchase of DVDs. Video-on-demand rekindles the experience of
families selecting a program to watch together. Video-on-demand can one day
reverse to a device such as Google Glass.
References
Arthur, W. B. (1996).
Increasing returns and the new world of business. Harvard Business
Review, 74(4), 100−109.Retrieved from the Walden
Library databases.
Laureate Education
(Producer). (2014e). David Thornburg: Increasing returns [Video file].
Baltimore,
MD: Author.
Laureate Education
(Producer). (2014g). David Thornburg: Red queens [Video file]. Baltimore,
MD:
Author.
IL: Thornburg Center for Space
Exploration.
Thornburg, D. (2008). Emerging Technologies and McLuhan's Laws of Media.
Used with permission of David Thornburg.
Thornburg, D. (2013d).
Photo Credits
Images of Beta
& VHS Tapes:
Image of
DVDs:
Image of The
Red Queen:
Image of Video
on Demand:
