what are the potential risks of a single organization contro

what are the potential risks of a single organization controlling much of the market for essential software?

can you think of any other first movers/technologies that might replace satellite radio?

Solution

The potential risks of a single organization controlling much of the market for essential software consist of:

1. Innovation and research and development will decline or will be less than optimal – When a single organization controls a major chunk of the software market it will have little incentive to make investments in research and development and seek to innovate and develop innovative solutions and software.

2. High switching costs for users – Switching costs are those costs which the consumers will incur when they stop using the software of the dominant player and buy software from another company. When a single organization controls a major chunk of the software market the users will have a high costs both in terms of explicit switching costs as well as implicit switching costs.

First movers or technologies that might replace satellite radio will come from internet and technology companies like Google, Yahoo, etc. These technology giants (just like XM and Sirius) will develop new technologies on the internet platform that will make radio broadcasting technologies using the power of internet and cloud technology.