Davidow's Law
Updated 2026-07-31
INTRODUCTION
English translation pending.
CORE DEFINITION
Coined by Intel engineer and venture capitalist William H. Davidow. Its core proposition is that in fast-moving technology markets a firm must be the first to render its own current products obsolete, since the alternative is having a rival do it on their schedule. The key qualifier is that the rule applies where technology cycles are short and switching costs are falling; in slow-moving or regulated markets, premature self-cannibalization destroys value without defending anything. The law treats cannibalization as an investment rather than a loss.
SCAFFOLDING EFFECT
Reduce cognitive load
- Attack Your Cash Cow: List which current product a new technology could kill, then build its replacement yourself. - Price the Delay: Compare the cost of cannibalizing early against the cost of being cannibalized late. - Protect the Standard: Aim to own the next generation's interface before a rival defines it.
Anchor fast decisions
Technology markets tip toward whichever standard gains adoption first, so the firm that ships the successor captures the installed base and the surrounding ecosystem. Waiting protects near-term margin but hands the transition to a rival who then sets compatibility terms. Self-cannibalization converts a defensive loss into an offensive position: the revenue you lose is revenue you would have lost anyway, but you keep the customer.
MINIMUM ACTION
In progress 0/1Practice this model in one real situation:
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- baike.baidu.comhttps://baike.baidu.com/item/达维多定律verified
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