Many unique issues can come up for companies in a new and emerging industry. This includes challenges related to the high level of uncertainty that can be present in such industries. As a new industry is getting off the ground, its overall growth and development doesn’t always go the way the businesses in it were expecting.
An example of this can be seen in the virtual reality industry. This industry includes companies involved in the making of VR hardware and software. Things in this industry, thus far, haven’t quite gone the way some were anticipating.
For one, VR technology hasn’t gone mainstream as fast as was initially anticipated. For example, some estimates of 2016 sales of VR devices have come in under expected levels. The slower-than-expected adoption of such technology is leading some forecasters to temper some of their growth predications for the industry.
One wonders how companies in the VR industry will respond to this. One also wonders what the future will end up holding for this industry.
As this underscores, businesses in new industries can be facing a lot of uncertainties. So, such businesses may very much want to avoid putting added unnecessary uncertainties onto their plate. One thing that could create new sources of uncertainty for a business is mishandling legal matters. For example, imprecise or confusing language in business contracts could add unwelcome unpredictability to business transactions. So, companies in new industries may want a business lawyer’s guidance on avoiding missteps when forming/negotiating contracts and when dealing with other important legal issues.
Source: Financial Times, “VR industry faces reality check on sales growth,” Tim Bradshaw, Feb. 28, 2017