Question

This statement is not correct about the collision between a digital and a traditional firm:

1. The self-reinforcing loops in network and learning effects changed the nature of competition;

2. The collision reshaped the industry structure;

3. The original innovator in a given industry always wins;

4. The digital firms sometimes do not compete with each other, but rather join forces to aggregate enough scale.

Answer 1

The original innovator in a given industry does not always win in the collision between digital and traditional firms.

Step-by-step explanation:

The statement that is not correct about the collision between a digital and a traditional firm is: The original innovator in a given industry always wins.

While the collision between digital and traditional firms can indeed reshape industry structure and lead to the aggregation of scale, the notion that the original innovator always wins is not accurate. Success in this collision depends on a variety of factors, including the ability to adapt to changing technology, customer preferences, and market dynamics.

For example, in the case of Kodak and digital photography, Kodak was the original innovator with the invention of the digital camera, but it did not successfully capitalize on this innovation and was eventually surpassed by competitors.