ARAM, JEFFREY R.

MANAGERIAL ECONOMICS

Being Digital is not Enough (DAT)

The article generally provides the readers a view on how technology can either make or
break a demand for a product. It mentions about how CD took over vinyl and cassettes
and how producers would want to surpass the similar achievement that CD had by
introducing new technology such the DAT, DCC, Mini Disc and DVD.
However, introducing new technology and expecting a well-received response from the
market will always be challenge. There is the element of cost of producing the new
product, is the product a better substitute, or is the product worth changing to.
Consumers perception will definitely be a big factor when firms try to introduce new
product with better technology.
DAT as they mentioned is great product but because record labels rejected the
capability and thought that it could be used for music piracy, the lack of support killed
the opportunity for growth for DAT. The same developers of CD Sony and Philipps tried
to introduce new technology in music recording though the DCC and Mini Disc. Both of
these are promising new technology but lacks the overall ability to surpass what CD is
currently offering. The introduction of DVD is definitely a revolutionary one and one may
mention that is definitely far better with CD. However, till this day DVD was only able to
get a considerable market share for recording music and was not able to totally take
over the CD.
The music recording industry has always been an exciting industry to review. In this
article we see that in order to revolutionize an existing well received product several
factors may need to be considered not only focusing on the technology it can bring. A
factor could be the timing (when demands are changing where new products needs to
be introduced to sustain market share/presence) or products suitability to the overall
demands of the bigger consumer base. At the end of it all what matters is the consumer.
A big decision of the firms should be based on how consumer will react and will the
consumer make to shift to the products that promise to be superior in both in its
capability and value it could bring to the lives of people.