This discussion reminds me of “Only the Paranoid Survive” by Andy Grove (Intel co-founder). In this book, he talks about “a technological inflection point”, which is a time in the life of a business when its fundamental changes.

Intel had one in its early days. In the 1980s, HP notified Intel that new Japanese memory chips were way more reliable and cheaper than American products. Intel first denied vigorously, but then made a strategic decision to get out of the memory chip business, and enter into the new and unproven microprocessor business. This decision allowed Intel to survive the 80s, while Mostek and others basically disappeared.