Essay on the Technology Life Cycle

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644 words
Harvey Mudd College
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The technology life cycle usually describes the profits and expenses of a product from the technological development stage to market maturity to terminal decline (Adner & Levinthal, 2001). Every company is out to outdo its competitors, and AMD is not an exception. Since the company wants to introduce a new product into the market, they need to ensure the development process is favorable. Currently, most technology companies do experience high volatile markets following the intense competition. The company has to adopt a short technology cycle but very effective one to beat its competitors in the game hence remain relevant in the market. The process should be cost effective and also allows the developers to sell it at a price that will enable them to make a profit and at the same time the consumers as even comfortable. The shit cycle will allow the firms to produce varieties with a short period.

The two partnering companies, Google and AMD, are in business and intends to make profits at the end of it all. Google is a large company that has stayed in the market for quite sometimes and partnering with it will create many opportunities to the AMD products ("10 Projects Showing Google Has the Future Figured Out - Hongkiat," n.d.). Following the duration it has taken in the market, the two companies can adopt the short technology cycle. That will enable them to develop that process within the shortest time possible hence making huge profits out of it.

The technological cycle usually has four stages starting from its initial to the final stage (Adner & Levinthal, 2001). Just as any other thing, a technology reaches a point where it becomes irrelevant in the market. Technological cycle, therefore, can affect the innovation process. The lengthy high-tech period may consume much time such that by the time the products hits the market, many other similar products may have taken over making it irrelevant to the consumers (Benner & Tushman, 2003). The two companies should consider using a shorter technological cycle to enable both firms to gain from their partnership business.

When they engage in the short cycle, Google Company will manage to make an enormous profit within a short period as AMD also gains from its processor. New things usually attract customers, and everyone is always eager to experience them ("10 Projects Showing Google Has The Future Figured Out - Hongkiat," n.d.). Their unique products will attract many customers, and this will create an excellent reputation for AMD that offers them their services.

With a short technological cycle, the companies will produce a lot of products. The firms will have to work within a given period and ensure that their stock is cleared within a given time (Adner & Levinthal, 2001). By achieving all these, the companies will have enough time to innovative a new and attractive product and introduce it into the market for the clients. The primary issue behind all these is remaining relevant in the market by producing varieties within the shortest time possible. With this cycle, the company can deliver new goods to ensure that by the time a given product exit the market, another one is in place to replace it. Whenever a company decides to use long technological cycle, they will have sold a given product for pretty a long time that may not earn them much profit (Benner & Tushman, 2003). The companys product may become boring as many customers may withdraw and go for a firm that invents new things frequently.


Adner, R., & Levinthal, D. (2001). Demand heterogeneity and technology evolution: implications for product and process innovation. Management Science, 47(5), 611-628.

Benner, M. J., & Tushman, M. L. (2003). Exploitation, exploration, and process management: The productivity dilemma revisited. Academy of management review, 28(2), 238-256.

10 Projects Showing Google Has The Future Figured Out - Hongkiat. (n.d.). Retrieved from


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