ADMS 1000 Lecture 3: Chapter 3 ADMS 1000 - Competitive Context

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Paulette Burgher

Document Summary

Organization rises to a peak then declines as industry ages how industries evolve overtime. Evolution of industry is effected by evolution of their technology. Divides into four distinct phases: introduction, growth, maturity, and decline. Introductory phase: sees many entrepreneur firms enter the industry (hope to emerge as market leader) Those that do not reach emerging standard of industry exit (shakeout) Dominant design/ widespread diffusion of an industry is a critical step for growth phase. Eventually industry reaches mature phase market stabilizes and sales grow more slowly. Firms have to be efficient producers to lower prices and compensate for slower revenue. Decline phase: aggregate sales drop and rivalry increases as industry undergoes consolidation through more mergers and exit of inefficient firms. Find dominant model get it accepted and institutionalized and main goals is legitimization. New industries are made due to results of change (technological or regulatory) creates leverage novel combinations of opportunities of resources and develop new products, services/ processes.