Business, Legal & Accounting Glossary
When an innovation or technological breakthrough reduces the value of one or more of a company’s existing assets.
You should always be following the erosion in your factory and keep all of your important machinery as protected as you can.
Whenever Caterpillar comes out with a new piece of equipment that is easier to operate it causes an erosion with an older piece of equipment, this is what causes Caterpillar to stop producing certain equipment, they become outdated, unwanted, and hard to sell.
When the new curved televisions were introduced, the company noticed that there was a precipitous drop in the value of its standard flat-screen televisions and wondered how to retool the operation in order to gain a greater share of the marketplace after such a value erosion.
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This glossary post was last updated: 30th October, 2021 | 0 Views.