ADMS 1000 Lecture Notes - Lecture 7: Dominant Design, Product Differentiation

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Peter Tsasis

Document Summary

Factors that determine the birth of the industry life cycle: technology, new discoveries, regulation/de-regulations. Innovation and technology: the evolution of tech: radial innovation. Innovation and technology: a cyclical model of technological change life cycle stage impacts: degree of competition, organizational structure, strategy needed, type of management approach, success factors. Main drivers of industry evolution: demand growth, creation and diffusion of technology and knowledge. Introduction phase the introduction phase is characterized by: high fragmentation, entrepreneurial, high degree of innovation, many small competitors, lots of r&d, customers willing to pay a premium, uncertainty about the market, lack of legitimacy. The growth phase is characterized by: a dominant design, shakeout (firms exiting, products appeal to wider market, economies of scale, lower prices, growing sales, new entrants. The maturity phase is characterized by: slow growth, markets saturated, competition intensifies, profitability, price-conscious consumers, lots of advertising, price wars. Reasons for decline: changes in demographics, shifting in consumer tastes, substitutes, advances in technology.