Industry Evolution, Blue Ocean Strategy & International Expansion

Notes

It helps identify what a company must protect, improve or prepare for as conditions shift • Industry Life Cycle (S-Curve) = more dynamic tool which describes four phases that every industry typically follows: o Introduction = sales are low, products are unknown and demand is limited o Growth = customers learn about the product, demand increases quickly and market expands o Maturity = market becomes saturated, customers become more price-sensitive, competitors multiply and growth slows o Decline = customers switch to newer or superior technologies, causing sales to fall à Industries move through these stages because of changes in customer behaviour, technology and knowledge di@usion. Companies must adapt their strategy at each stage. Some industries decline quickly, while some others regenerate or remain in maturity for decades. Understanding where an industry sits on the S-Curve helps firms adapt strategy. - Competing in mature and declining industries = • In mature industries, growth slows down because demand decreases, customers already know the product and competition becomes intense. Innovation becomes di@icult and companies must shift their strategy from di@erentiation to cost...