erosion

Definition

When an innovation or technological breakthrough reduces the value of one or more of a company's existing assets.

Use erosion in a sentence

You should always be following the erosion in your factory and keep all of your important machinery as protected as you can.

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Whenever Caterpillar comes out with a new peice 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with an older piece of equipment, this is what causes Caterpillar to stop producing certain equipment, they become outdated, unwanted and hard to sale.

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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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