Path dependence and product innovation pathway.docVIP

 PAGE \* MERGEFORMAT 4 ‘Path dependence’ and product innovation pathway Do you know a modern railway distance between the two tracks is how to decide? In economics, there is a path dependence story, saying that the United States is the reason why the width of railroad tracks 4 feet further 8.5 inches because it is the designer of the British Rail, British Rail is 4 feet, then 8.5 inches. Why are British Rail is that this figure? Because the British Rail is designed for the design of the tram rails, and the United Kingdom tram car rails is 4 feet, another 8.5 inches. Why is the United Kingdom tram is that this figure? This is the distance from the decision by the carriage wheels. Why carriage wheels 4 feet distance is also 8.5 inches? Because of the ancient chariot driven by two horses, while the two horses butt is 4 feet further 8.5 inches. Modernization of the railway gauge is actually from ancient horse’s backside, the width of the decision! Institutional Economics quoted in this story, is an indication of evolution in the economic system, there is a self-reinforcing mechanism. This mechanism allows the evolution of the system Once you embark on a path, it will be in the future development of self-reinforcing. To refer to this story is to illustrate: Once the manufacturers have chosen a path for the distribution of its products or services, will gradually produce hundreds of times before feeling, difficult to change, even if there is a more appropriate channel as well. Even if the changes, often with traces of the old path, it is hard for a revolutionary innovation in the channel. Innovation in enterprises for channels to follow the consumer market composition, structure and other changes in the trend. In contrast the historical development of marketing channels and in the form of like nature, like biological evolution are also in the process of changing the natural environment to promote change in species survival of the fittest, with the modern market cha