Technology company strategy: Growth or profitability?

Nowhere in industry is the trade‐off between profitability and growth more critical than in high technology companies. In an embryonic company, market acceptance of a new technology fires growth. Before long the company's success begins to be noticed by others, competitors enter, and the battle for market share begins. Then comes the problem of making pricing decisions—should the new company price for profit or for market penetration? And this is where current economic uncertainty forces new technology companies to make difficult strategic decisions.