Industry evolution and Strategic Change
6 important questions on Industry evolution and Strategic Change
What are the four stages of the Industry life cycle?
2. Growth (Technical improvement, accelerating market penetration)
3. Maturity (Saturation of market, increase of competition)
4. Decline (new technologies and industries take over)
What are the two main factors influencing the industry life cycle?
2. Creation and diffusion of knowledge
- Dominant designs and technical standards
- Product to process innovation
What are the key success factors during the 4 stages of industry evolution
2. Growth: scaling up, managerial and organizational challenges
3. Maturity: Competition --> cost efficiency
4. Decline: Cost cutting
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Why is organizational change difficult?
Routines,
Social Political Structures,
Conformity,
Limited search,
Commentaries between strategy, structure and systems.
Why is is technological change a problem for companies? (3 topics)
2. Technological change can occur at component or architectural level. Architectural level can come with big problems, inertia of established firms.
3. Disruptive technology: disruptive changes can mean a whole new business model and production methods
Name 3 tools for strategic change management
2. establishing stretch targets
3. reorganization and new blood (oscillate from centralization to periods of decentralization)
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