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How Industry Change
How Industry Change
How Industry Change
Anita M. McGahan
Introduction
A firms strategy cannot succeed unless its
aligned with the industrys change
trajectory
Less risky
a staggered startegy: incremental improvent and experimenting to
develop new market
Risky:
abandon their position and move to emerging line of business
Reinvesting in an establish industry
Progressive Change
Industrys core assets and activities are not
threatened with obsolescence
Basic assets, activities, and underlying technology
remained stable
Progress occures, and technology can have an
enormous impact, but it happens in the existing
frame of business
Profitable strategies carving out distinct positions
based on geographic, technical, or marketing
expertise to build resouce and capabilities
incrementally and steadily
Performance depends on speedy responses to
feedback
Creative Change
Core assets are under threat but core activities are
stable
Companies must continually restore their assets
while maintaining the customer and supplier
relationship
Companies tend to spread the risk of new project
development over a portfolio of initiatives
Progressive and
Creative change.
The Alternate
model
radical or
intermediating
trajectories
Capitalizing on Industry Evolution
Analyzing radical and intermediating change
Balancing act pursuit near term profit while
avoiding investment
New ways of dealing with competitive threats
Interpret internal conflict in a new way