Through the years, markets have witnessed several products whose demands have declined. There are several reasons why these products have experienced a huge decline in consumer demand. One of these products is the encyclopedia. There was a time when the major source of information for students and researchers was the encyclopedia. However, during the late twentieth century, the information revolution started and the fast paced development in technology overpowered the once profitable printed encyclopedia business. The competitive advantage that was previously enjoyed by the encyclopedia has been swallowed by impact of the new technology, specifically, the internet technology.
Another example of a product which has faced a decline in consumer demand is the photographic film for cameras. The shift from film-based to digital photography has greatly hurt companies such as Kodak and Fuji. More than a decade ago, almost 1 billion rolls of film and 19.7 million film cameras were being sold every year in America, but around three years ago only about 20 million rolls were sold and film camera sales fell below 100,000. Just like the encyclopedia, the deterioration in the demand of photographic film is mainly due to the introduction of digital technology which others consider cheaper and more convenient.
The personal computer is another product which is in its dying days. As individuals and companies switch to using laptops and tablets, the demand of personal computers has been declining through the years. Companies would rather give their employees iPads which they can bring home, rather than spend on personal computers which are very bulky. The case of the personal computers’ decline is another classic example of a product that has become obsolete because of advancements in technology. With the fall in prices of tablets and laptops, more people would be more attracted to these products, rather than purchasing personal computers.
The moral of the story in these product declines is that companies should have the foresight to look into the possibility of new technologies that may impact their businesses. No matter how profitable and how big the company is today, it should not be complacent. Companies come and go, but that which is able to adapt to the changing markets and environment is the one that will eventually stay.
References
Evans, P., & Wurster, T. S. (2000, December 5). How Encyclopedia Britannica was blown to bits. Retrieved from capitalsmmagazine.com: http://capitalismmagazine.com/2000/12/how-encyclopedia-britannica-was-blown-to-bits/
Ravindranath, M. (2014, February 11). PCs lumber towards the technological graveyard. Retrieved from theguardian.com: http://www.theguardian.com/technology/2014/feb/11/personal-computer-decline-pc-obsolete
Zhang, M. (2011, May 31). Film may be mostly gone in the US by the end of the decade. Retrieved from petapixel.com: http://petapixel.com/2011/05/31/film-may-be-mostly-gone-in-the-us-by-the-end-of-the-decade/
