Economic forces driving discontinuity
lIncreasing efficiency of business
lIncreasing efficiency of capital markets
lGlobalization and deregulation of markets
lFragmentation of Markets
l
lAll lead to: Increased Competitive Pressures
Increasing efficiency of business
Dramatic decline in capital costs. Industry shifted from goods to services concurrent decline in interaction and transaction costs. Arrival of IT and rise in labor productivity due to advances in technology.
Consumers: More Sophisticated and Demanding
Flexible Manufacturing Technology
Mass Customization
Firms Outfocus Competitors by Customization


Increasing efficiency of capital markets
Increasing accuracy and transparency of corporate data