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were first introduced in the 1980s, they were substantially more appealing than the
traditional LP vinyl records. Record companies were easily able to double the prices,
even though producing CDs cost a fraction of what it cost to produce LPs. For
decades, record-producing companies benefited from this status quo. Yet when peer-

to-peer file sharing through software such as Napster and Kazaa threatened the core
of their business, companies in the music industry found themselves completely
unprepared for such disruptive technological changes. Their first response was to sue
the users of file-sharing software, sometimes even underage kids. They also kept
looking for a technology that would make it impossible to copy a CD or DVD, which
has yet to emerge. Until Apple’s iTunes came up with a new way to sell music
online, it was doubtful that consumers would ever be willing to pay for music that
was otherwise available for free (albeit illegally so). Only time will tell if the industry
[3]
will be able to adapt to the changes forced on it.
Figure 7.8

Kurzweil expanded Moore’s law from integrated circuits to earlier transistors,
vacuum tubes, relays, and electromechanical computers to show that his trend holds
there as well.
Globalization
Globalization is another threat and opportunity for organizations, depending on
their ability to adapt to it. Because of differences in national economies and standards
of living from one country to another, organizations in developed countries are
finding that it is often cheaper to produce goods and deliver services in less

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