ADMS 1000 Lecture Notes - Lecture 7: Cost Leadership, Creative Destruction, Market Power

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

Document Summary

Businesses that may have similar resources, technology or consumers. Can be defined broadly or narrowly (eg. airline industry vs. transportation industry) Given a long enough period of observation, almost all industries exhibit an inverted u-shaped growth pattern, with the number of organization rising initially up to a peak, then declining as the industry ages. The pace of an industry"s evolution along its life cycle is closely related to the evolution of technology within the industry. Describes the evolution of the entire product category and its associated industry, not a single product or firm. The life cycle phase affects the degree of the competition firm"s face, the type of organization structure, the kind of strategy used, and the appropriate management approaches needed to survive and grow. This pattern shows how sales volume grows, stabilizes, and declines as an industry develops. The industry life-cycle model divides industry evolution into four distinct phases: introduction, growth, maturity, and decline.