Final answer:
Disruptive growth caused by computers has significant implications across industries, altering company dynamics, job markets, and local economies. These changes include shifts from physical to digital products, automation replacing jobs, and firms' sizing debates between small and large entities, influenced by information technology. This technological evolution creates both opportunities and challenges that require strategic adaptation.
Step-by-step explanation:
If computers are causing a period of disruptive growth, the implications for various industries and sectors are significant and multifaceted. Industries like photography, music, and manufacturing have already experienced profound changes due to digitalization and automation. For instance, digital photography quickly supplanted traditional film, leading to the downturn of companies such as Kodak and impacting economies and communities, such as Rochester, New York. Similarly, the rise of online music services has closed thousands of record stores, affecting local communities' culture and economy.
In the manufacturing sector, computerized robots have replaced many jobs, and the phenomenon of outsourcing has shifted jobs to less-developed countries. The information economy has been bolstered by the Internet, fostering industries that operate almost entirely online. These changes lead to the creation and distribution of products like music and films in digital forms rather than physical media such as CDs and DVDs, significantly reducing manufacturing costs.
Firms are also influenced by disruptive technologies. Small companies may now reach a global market, suggesting a future with more competitors. Conversely, significant players like Microsoft and Amazon might dominate, leading to 'winner-take-all' markets due to the ease provided by better information and communication technology in managing operations worldwide. This dichotomy presents an interesting dynamic for economists, businesspeople, and policymakers.
The rapid development of computer technology is part of a positive feedback loop, where computers are used to design more advanced computers, accelerating growth. Such disruptive technologies can lead to market upheavals and trigger broader socio-economic effects, requiring careful consideration by all stakeholders to navigate the changing landscape effectively.