The 5 phases of the Economic Patterns of Media
The most influential thing I have learned thus far in our Mass Media class would have to be the structure the Media Economic Patterns. The five phases consist of Invention, Entrepreneurship, Industry, Maturation, and Defending Infrastructure.
Johannes Gutenberg invented the metal movable type. This invention has revolutionized our lives, the way we are able to make media. This was the start of a new era of media. Newspapers, books, and magazines were published much quicker. Before the invention of the movable type, everything was slower. The production, movement, and distribution of books, newspapers, and magazines was revolutionized when this simple invention was created. Everyone liked the movable type, because it was able to give books or magazines the appearance of being hand-written and if that wasn’t great enough, it did it in half the time. More benefits consisted of cost being reduced dramatically and the production greatly increased.
The next phase is entrepreneurships. I don’t know too much about this phase, but what I do know is that this phase typically starts with “costly false starts.” Vision, capital, and risk are all required in an entrepreneurship. I found it interesting that even though most aren’t successful. Some, however, become an application of technology, find an audience, and produce the next phase; an industry.
An Industry, the third phase, brings competition into the economy. Competition brings more companies to come together. During the lecture, I learned two terms key to industries, an oligopoly and a monopoly. An oligopoly is an industry that is compiled of a few companies dominating production and distribution. A monopoly on the other hand is a single company that is dominating in a particular industry, locally or nationally. I like to view them as, oligopoly involves competition and monopoly involves a lack of competition. It all goes back to the basis of competition between industries. That is what I think John Vivian was trying to say rising industries produce imitators. The United States has created a culture of competition. The thing is, we never would have come this far if it wasn’t for having our roots in inventers and technology.
Maturation is a key phase in economic patterns revolving around media. Maturation is basically maturing. Companies, like humans, mature. Media companies maturate into something bigger. They mature into companies that recognize common issues and address them. This is what trade groups are. A trade group is an organization that is created due to related endeavors, competitors, or the pursuit of similar goals. These groups are huge into research. Finding ways to tackle common issues to benefit their members. This creates “industry-wide technical specifications” for all parties to follow.
The last phase is defending infrastructures. This was my hardest phase to understand. Basically, a company begins facing problems complacency, redevelopment, and failure. Andy Grove brings up his 3 keys for an aging industry. First, ignore new challenges. This means to minimize the threats from “cross-industry” innovations. Next, he says to resist change. Change is merely prolonging the inevitable. Resistance takes many forms like enlisting government agencies to adjust public policy. In other words, Andy was saying to protect the current media infrastructures. His last point was radical reforms. These are typically to late, but they can help your company keep its head above water a little longer.
This is what I have been focusing on personally for the past few weeks. When we covered the phases, they stuck with me. That is why I chose to write about the Media’s Economic Patterns. My question to you, is if there was a sixth phase, what would it be?
