Chapter 8 Industry Evolution
Understanding the process of industry evolution is to predict future need of strategy change so the firm will benefit most. Industry Product lifecycle and growth of sales follow the S curve. The stages of lifecycle includes introduction, growth, maturity and decline. Each individual function from the firm may react differently. Change of industry boundaries could may supplier or buyer intend to integrate forward and backward. Author also highlights that continuous innovation may not pay if the diffusion period is short and buyers’ loyalties to pioneering firms are not strong enough. The diffusion of knowledge is to maintain position on existing know-how, ensure leading position on the technology development, or strategic position must be shore up.
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