BUSTOS, Kevin William G.                                                                                             September 5, 2011

3AHR                                                                                                                                     MGT05

 

The expression “creative destruction” was popularized by and is associated with Joseph Schumpeter, particularly in Capitalism, Socialism , and Democracy. Schumpeter popularized and used the term to describe the process of transformation that accompanies innovation. In Schumpeter’s vision of capitalism, innovative entry by entrepreneurs was the force that sustained long term economic growth, even as it destroyed the value of established companies and laborers that enjoyed some degree of monopoly power derived from previous technological, organizational, regulatory, and economic change.

I personally agree with Joseph Schumpeter in what he argues about creative destruction. Where in he stated that continuous growth and improvement in inventories, ideas, skills, technologies, and equipment will cause into an innovation that it would lead to its downfall. Making the standard of living for people very high that them their selves can no longer satisfy or would be very hard and strenuous to satisfy.

Perfect competitiveness were in all firms in an industry are all in equal and stands in the same field. Producing the same goods and selling them for the same price, having all resources equal. Perfect competitiveness does not exist. Someone has always have to be on top and other will try to climb up and out take or out rank each other for greater profit. It is just how it is, nobody wants to be last and everybody wants to be number one. It’s human nature to keep moving forward up the ladder of success.

So competitiveness will give birth to capitalism and monopoly. A degree of monopolistic will always come into birth. It may be long term or short term degree of capitalism. But continuous search for innovation is needed and required in order to retain its edge or status on top.

What have come up to me is that we are on a battle field. A warfare of innovation. Where in you have to shake things up in order to come up with new better things. A creative disturbance as you may, to jump start the competition and innovation process.

 

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