li 1840 1880 1900 1920 1940 1960 1980 2000 o th er i nd us tri es l bank in g

Li 1840 1880 1900 1920 1940 1960 1980 2000 o th er i

This preview shows page 5 - 6 out of 16 pages.

.::" . 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 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.
Image of page 5
Image of page 6

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture