Ebdino, a company that manufactures tires, observes that the sales of its traditional tires have declined drastically and that the sales of tubeless tires have increased. Ebdino hence decides to stop manufacturing traditional tires and replace them with tubeless tires. In the context of innovation streams, which of the following concepts does this scenario best illustrate? A) Technological substitution B) Technological lockout C) Technological singularity D) Technological determinism

Question

Business

Chuckles

6 November, 13:12

Ebdino, a company that manufactures tires, observes that the sales of its traditional tires have declined drastically and that the sales of tubeless tires have increased. Ebdino hence decides to stop manufacturing traditional tires and replace them with tubeless tires. In the context of innovation streams, which of the following concepts does this scenario best illustrate? A) Technological substitution B) Technological lockout C) Technological singularity D) Technological determinism

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Dennis · Answer 1

A.

Explanation:

Technological substitution occurs when there's preference of one product over the other due to technological advancement available in the product.

In this case, Ebdino decided to swap the production of traditional tyres for the new tubeless tyres due to the fact that customers now prefer the tubeless tyres as shown by the increase in sales of that and the reduction/decline in the sale of the traditional tyres.

The technological substitution was important for Ebdino to remain in business.