Industry evolution and Strategic Change

6 important questions on Industry evolution and Strategic Change

What are the four stages of the Industry life cycle?

1. Introduction (Small sales, high costs, lack of experience)
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?

1. Demand (grows and declines during the stages)
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

1. Introduction stage: Product innovation
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?

Organizational inertia:
Routines,
Social Political Structures,
Conformity,
Limited search,
Commentaries between strategy, structure and systems.

Why is is technological change a problem for companies? (3 topics)

1. Technological changes can be competence destroying or competence enhancing.
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

1. creating perception of crisis
2. establishing stretch targets
3. reorganization and new blood (oscillate from centralization to periods of decentralization)

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