ADMS 1000 Study Guide - Final Guide: Market Power, Creative Destruction, Dominant Design

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

Document Summary

Many entrepreneurs enter the industry, hoping to emerge as a market leader. Slow growth: growth stage: dominant design and shakeout. Occurs after the industry integrates around a particular approach/model. Dominant design: the dominant approach established in a product class. De jure standard: standard that is legally enforced by a government or organization. De facto standard: ta(cid:374)dard that is (cid:374)ot e(cid:374)for(cid:272)ed (cid:271)(cid:455) a(cid:374)(cid:455) authorit(cid:455), (cid:373)ore of a (cid:862)i(cid:374) fa(cid:272)t(cid:863) or (cid:862)i(cid:374) pra(cid:272)tise(cid:863) rather tha(cid:374) i(cid:374) la(cid:449) Shakeout: large number of exits from the market at the same time as the output of the industry increases, a natural process for an industry weed out the weaker competitors: maturity phase: critical transition. The market stabilizes and sales grow more slowly, firms must become more efficient during this phase. Commoditization: the process where a differentiated good becomes undifferentiated in the market, causing firms to lower prices to draw in business from consumers. Competition between firms intensifies: decline phase: difficult choices.