Consumers and enterprises as actors on the market

• This conceptual paper discusses the phenomenon of differentiation made possible throughbranding or innovation or a combination of the two. Differentiation is eventually the driving forcefor the development of its own negation, commoditization. When customers have endured acommoditized market long enough the opportunities open up for creative destruction, this conceptof Schumpeter (1942), means that an entrepreneur invents a completely new way of satisfying thecustomers’ unsatisfied needs, making the industry that no longer bothered about their customers. Many researchers have tried to re/brand destructive innovation as their own, with concepts, suchas of ”transilience”, and “blue ocean strategy’, as opposed to ‘red ocean strategy’.The paper focuses on innovation as a differentiation strategy and on temporary monopoly rent asa driver of innovation. Increased competition and shortening and life cycles makes capitalism morevolatile and the strategies to reduce the risks involved are discussed. These strategies lead to thereal-world implementation of the concentration of capital forecasted by Marx and feared by Schumpeter.The paper identifies the need to continuously monitor the concentration of capital and to understand individual markets by studying the firm’s profit.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Nyckelord

Market

differentiation

commoditization

innovation

creative destruction

monopoly rent

organic composition of capital

volatility

concentration of capitaL

Marketing

Publikations- och innehållstyp

ref (ämneskategori)

art (ämneskategori)