Chapter 9&10 Strategy in Fragmented &Emerging Industries
As no firms having a significant market shares we name it the fragmented industries. Fragmented industries vary greatly in their technical sophistication. Companies in the analog IC industry fit into this category, which the competitors all have high diverse product differentiation for the needs of different markets. To overcome fragmentation, the firm can create economics of scale on manufacturing thru technology innovation, make acquisition or spin off the aspects so the key staffs can be more focus and responsive the needs from market. Increasing the value added on product & service, specializing product type to satisfy need of different customers, better delivery time and focus on high growth geographic area.
No firms would like to be the victim of technology evolution.
Emerging industries have been created by technological innovation, shifts of cost, new customer needs, or sociological changes that make a potentially viable business opportunity. There are no rules of the game in the emerging industry. To survive timing on identifying is also critical. Threatened entities from the emerging industry can be mitigated by lowering the unit costs from the forging profit or aim to make product more competitive. Forecasting industry development is more important than formulating competitive strategy directly. The device of scenarios is an effective analysis tool to forecast the need from the emerging market. By tracking the feedback from market and competition, further digest the scenario result can improve the product development and maintain the technology leadership.
No comments:
Post a Comment