Question

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. Contrast the two graphs of technology performance and technology’s market adoption.

Answer 1

This curve shows the market adoption of the technology. The first adopters are innovators which constitute a very small fraction. These people try everything interesting and new in the market, want to be the first owners, and are not concerned about the money. These are followed by early adopters who follow innovators and they review the technology and are the first ones to realize its potential in comparison to existing options and adopt it. This is the point when technology has already become popular. The late majority are the ones who want to see the performance of technology for a while and want the cost to come down. They are conservative in nature and want to take the minimal risk. Laggards are the last few who would adopt it due to economical reasons or lack of awareness.

This graph shows the same adoption with respect to the market share. At the time of introduction, the market share is very low, mainly comprising of the innovators. As the product gains popularity, its share increases with adoption by early adopters and early majority and reaches its maximum when the late majority joins in, and the existing customers indicate the maximum market share. At this time, competitive ( and more superior) technologies enter the market, which forces some of the existing customers to migrate to them. Even at this time, the laggards are adopting this technology because now it is available for a lower price, and is more affordable in comparison to the new technologies. The market share eventually wanes off, with most of the customers switching over to the rival technologies which have also climbed on their respective curves.