ABSTRACT

Transformation is something that happens to all industries. It appears to be a relatively natural phenomenon that occurs as the capabilities within an industry develop, the use of the product or service becomes more widespread, and the complexity of the product increases. Transformation is by nature disruptive and creates opportunities for new entrants based on new visions of how the product or service can be delivered to customers. Looking at the car industry, we see the first car companies emerge during the 1890’s. The diversity of products is large as each company develops its products. Through the combination of standards, specialization and coordination, the industry is able to reduce the learning curve dramatically. With the increase in production and sales, the customer base of the product grows and with it the number of people who have an opinion about the product.