Inflection Point

What Is an Inflection Point?

An inflection point is an event that outcomes in a huge change in the progress of a company, industry, sector, economy, or international situation and can be viewed as a defining moment after which an emotional change, with one or the other positive or negative outcomes, is expected to result.

Companies, industries, sectors, and economies are dynamic and continually advancing. Inflection points are more huge than the small everyday progress ordinarily made, and the effects of the change are in many cases notable and far and wide.

Understanding an Inflection Point

In view of mathematical charting models, the inflection point is where the direction of a curve changes in response to an event. To qualify, the shift must be noticeable or definitive and credited to a specific reason.

This principle can be applied to an assortment of economic, business, and financial data, for example, shifts in the gross domestic product (GDP) or changes in security prices, yet it isn't utilized in reference to normal market variances that are not the consequence of an event.

Andy Grove, Intel's prime supporter, depicted a strategic inflection point as "an event that changes the manner in which we think and act."

Inflection points can be a consequence of action taken by a company, or through actions taken by another entity, that straightforwardly affects the company. Also, inflection points might be brought about by a unintentional action or an unexpected event.

Special Considerations

Regulatory changes, for example, could lead to an inflection point for a corporation that was recently held back by regulatory compliance issues. Inflection points in technology incorporate the appearance of the Internet and smartphones. Strategically, an inflection point can be shown by the fall of the Berlin Wall or the fall of communism in Poland and other Eastern Bloc countries.

Certain unexpected events can incorporate major economic downturns, for example, the financial crisis of 2008, or natural calamities that influence a specific business or industry in a meaningful manner. In such manner, an inflection point may not be identifiable until after the event has happened and a change in direction has been hence noted.

Genuine Example

Whenever an inflection point is distinguished, it is in many cases a sign that the impacted industry must roll out certain fundamental improvements to keep on working. For instance, with the presentation of the smartphone, other mobile technology manufacturers needed to adjust to the changing market conditions to stay fruitful.

Palm Inc., the manufacturer of the Palm Pilot personal coordinator, endeavored to adjust to changing market conditions through the release of the Palm Treo smartphone, however it was eventually unable to contend with more grounded industry contenders, like the Blackberry and the iPhone.

This competitive pressure brought about a huge loss of stock value. In 2010, HP Inc. announced its acquisition of Palm, which incorporated an offer that added up to around $5.70 per common share of Palm stock.

As of Q2 2021, Apple's global market share of the mobile telephone market is 15%, behind Xiaomi (16%) and Samsung (18%).

The change in the mobile telephone market towards smartphones impacted Palm as well as the greater part of the large mobile telephone companies at the hour of the iPhone's release. This incorporates Nokia and Motorola.

Toward the beginning of the 2000s, Nokia had a 30.6% market share of the mobile telephone market; the prevailing company in the industry. After not having the option to contend with the development of smartphones, Nokia sold its mobile telephone business to Microsoft in 2013. Microsoft couldn't figure out a method for rebooting the company and sold it in 2016.

The company actually makes mobile telephones, taking special care of the mid-lower price point however is just a shadow of its former self.

Features

• Whenever an inflection point is distinguished, it is in many cases a sign that the impacted industry must roll out certain fundamental improvements to keep on working.
• Inflection points are more critical than the small everyday progress regularly made in a company, and the effects of the change are many times notable and boundless.
• Inflection points can be purposeful (actions taken by a company or contender) or unintentional (those that happen by accident or from unanticipated events).
• On the off chance that companies are not able to adjust to an inflection point, they will fail to keep up with contenders and cease operations. For those that can adjust, inflection points can be an advantage.
• An inflection point alludes to a key event that changes the direction of some interaction or situation connected with the economy or society.

FAQ

What Is a Point of Inflection?

A point of inflection is the location where a curve changes from inclining up or down to slanting down or up; otherwise called sunken vertical or inward downward. Points of inflection are concentrated on in analytics and calculation. In business, the point of inflection is the defining moment of a business due to a tremendous change. This defining moment can be positive or negative.

What Is an Inflection Point in Calculus?

In math, the inflection point is where a chart's concavity changes from either dependent upon down or down to up. This change might be slow or emotional however it is viewed as the point where the slant begins to change.

What Does Inflection Point Mean in Common Usage?

In common utilization, an inflection point is essentially the place where a huge change happens. The change might be a positive one or negative one relying upon what the inflection point means for the subject in question.