Early American automobile manufacturers faced intense competition.
Hundreds of companies competed, leading to frequent shifts in market leadership.
This turbulent period eventually led to consolidation among a few dominant firms.
The early search engine market showed a similar pattern of rapid displacement.
Market leaders like AltaVista and Yahoo were quickly overtaken by new entrants.
Reasons
- Engine designs and body styles evolved rapidly.
- Production methods changed frequently among competitors.
- Users quickly adopted better alternatives as they emerged.
- New entrants offered superior technology or services.
- Low switching costs allowed users to easily change providers.
I disagree with the author here.
As a Family Doctor (GP), I would make this conditional rather than decisive: the mechanism only carries if the surrounding constraints actually permit it.
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