.::"
.
li
~
,.
~,.
1840
1880
1900
1920
1940
1960
1980
2000
o
th
er i
nd
us
tri
es, l
bank
in
g,
me
di
c
al
services) fra
gme
nt.
To
understa
nd
th
e dyn:
11ni
cs
of
111du
s1ry c
hang
e.
we
may
ne
ed
10
l
oo
k at
clu
sters of related in
dustries
.'
Impli
ca
ti
ons of t
he
Life
Cycle
for
Competit
i
on
and
Str
ategy
Ch
ange,
in
de
mand
grow
th
a
nd
t
ec
hn
ol
ogy
over the cycle have
impli
cati
ons
for
in
du,tr
y s
tru
c
!Ur
e,
th
e po
pu
lation of firms, and
co
mp
etition. Table
8.1
s
umm
arizes
th
e p
rin
cipal features
of
each stage
of
th
e industry life
cy
cle.
Product
Dif(erent
iatio
n
Th
e
introdu
ction stage t
yp
i
ca
ll
y feat
ure
s a
wide
va
rie
ty
ol
pro
du
ct
type
s
th
at reflect the
di
ve
rs
it
y of t
ec
hn
ol
og
ies
and
design
s-a
nd
the
l.1t'k of consensus
ove
r custo
me
r r
eq
uir
ements.
Co
nvergence
aro
und
a do
min
ant
dc
·,ig
n is often
fo
ll
owe
d by
co
mmodi
tization
durin
g
the
mat
ure
pha
se
un
less
pro
-
ducers
deve
lop
ne
w
dim
ensions
fo
r
diff
ere
ntiation
. Per
so
nal
co
mput
ers, c
redit
cards,
onl
in
e financial
se
rvi
ces, w
ir
el
ess
co
mmunic
ation services, a
nd
internet
access have
:di h
<:c
ome
co
mmodi
ty
items wh
ic
h buyers select
prim
arily on
pr
ice
. H
oweve
r,
th
e
tren
d to
wa
rd
co
mmoditi
zation also creates
in
c
entiv
es
fo
r
firm
s to create n
ov
el
.1
ppruac
he, lo
differ
entiation.
Or
#c
111i
za
ti
onal
De
mog
raphics
and
Indu
s
tr
y S truc
tur
e
The
number
of
fir
ms
in an
indu
st
ry
chang
es
substantially
ov
er the
li
fe
cy
d e.
Th
e
fi
eld of
o rg
an
izati
onal
ec
o
lo
gy ,
founde
d by_Michael Hannan.Jo
hn
Freeman,
and
Glen Ca
rroll
, a
nal
yz
es
the
po
pu
la11
on ol
indu
stn
es
and the
pr
ocesses of
fo
undin
g
and
selec
ti
on
th
at
de
termine
<:
nt
_
ry
and
exi
t.
"
So
me of the main findings
of
the orga
ni
zational e
co
l
og
ists in relation
1<>
ind
ust
ry
evolution are:
• The
numb
er
of
!inn
s in a · d
•
.
f .
.
.
. .
. . · n
in
ustry mcreases
rapid
ly
during
th
e e
ar
ly sta
ges
0
an induS
lry
s
li
fe
.
ln11
1a
ll
i•, an industry may be pio
neered
by a f
ew
firm
s
However as the i
t .
• ·
1
..
•
..
of new
Ii.
n_c
usc
ry
g,
un
s eg
111ma
cy, fail
ur
e rates
decli
ne a
nd
th
e rate
r
rm
fo
undin
gs
increa
ses
. The US
automobile
indu
st
ry
co
mJ
)f
i
sc·d
272
rnanu
,
ac
cu
re
rs ·n 1909 •
I
·t ·
.
'
. i
.
w
u e
in
l V
receivers there
were
92
compan
ies
in
Ir
~
CHAPTER 8
INDUST
RY
EVOLUTION AND STRATEGIC CH
ANGE
2 l
3
E
8
1
T
he
c·,o
l1
111
on
ol
11
1du,
1n , 1ru
L1
ur
e
and
c<
Hnpc·
111
1
on
m
l'
r 1h
t·
l,k-
,"
k
f
J\BL
.:
....
-
·
----
-----
----
----------:
In
tr
oduc
ti
on
Growth
Ma
tu
rity
Decline
oem
and
Li
mit
ed
to
ea
rly
Rap
idly
increa
si
ng
Ma
ss
mar
ke
t,
re
pl
ace
ment/
Ob
solesc
ence
ado
pt
ers:
ma
r
ket
penetration
repeat
bu
y,n
g. Cu
sto
m
ers
high-income.
knowledgeable and price
avan
t-garde
sensiuve
Tec
hn
ology
Co
mpeting tec
hn
olo-
Standardization
Wel
l-diffus
ed
te
chnic
al
Li
n
le
pr
odu
ct or
pr
o
g1
es,
rapid product
around dominant
know-how: quest for
c
ess
innovation
1n
no
vat1on
technology,
rapid
technologi
ca
l
pr
ocess
i
nnova
ti
on
improvements.
