University of Twente Student Theses


Following the nature of capitalism, or fighting towards the true potential of a product? “An assessment of the future of the PND Industry”

Huigen, Joost (2014) Following the nature of capitalism, or fighting towards the true potential of a product? “An assessment of the future of the PND Industry”.

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Abstract:History has shown us that there are two different ways of development for a new innovation: a path leading toward replacement by a newer innovation and a path towards a stable and productive product. Another way to say this would be that either products are “destroyed by creativity”, or the innovation gets to a point where there exists stability, both in demand and profits. These stable products follow the same curve as suggested by the Hype cycle Gartner. Products that get replaced follow the path towards Creative destruction, a definition already coined by Marx. When researching if a company can influence the path it takes on this crossroads, it is required to find a highly technological market where both ways are still viable options. To provide substantiated evidence both phenomena have been investigated in the Personal Navigation Device (PND) Industry. This highly technological Industry is experiencing shrinking demands and declining profit margins. Some explain this decay as the beginning of the end. Others see the decline as a component of a valley expecting a rise to come after the fall. According to them, the industry is experiencing a normal aspect of a maturing product, and the industry will not dissolve because of it. To prove this, this paper has analyzed the connection between Gartner’s Hype Cycle and the PND industry, to determine if the PND industry follows Gartner’s path, or fails as the process of creative destruction suggests. There are a lot of similarities between the descriptive model of Gartner and the environment of the PND market, which could be used as arguments for certain choices that can be made to avoid Creative Destruction. Therefore, this Paper will investigate the assumption that a product can potentially be directed towards a stable productive future, instead of just being replaced by other, newer innovations. This paper contributes to scientific literature in the following way: this case study will research if the PND industry can serve as an example to back up the assumption that creative destruction does not have to happen, as Marx suggests. This thesis will provide a basis to check if this assumption can be generalized to other industries. This research will be a case study research.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
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