The Anatomy of Diffusion

This note introduces the theory of innovation diffusion, using the a range of diffusion curves to illustrate the dynamics. The case explains how these forms (and consequently the speed of diffusion) depend on factors related to the products (relative advantage, compatibility, complexity, ease of trying out the product, observability and risk) and on word of mouth from innovators to imitators. By explaining how these factors affect the speed of diffusion, and using examples of how other companies have managed this situation, our aim is to establish a predisposition to diffusion management in managers’ minds, particularly in the early phases of a product’s life cycle.


Sánchez H.; Villanueva Galobart, Julián; Nueno Iniesta, José Luis; wrote a tech note published in IESE Publishing, February 16th, 2005

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