ADMN 1000H Chapter Notes - Chapter 7: De Facto Standard, Dominant Design, De Jure
28 Nov 2016
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Document Summary
Industry life-cycle model an inverted u-shaped growth pattern that is seen in almost all industries given a long enough period of observation. Number of organizations rises initially up to a peak, then declines as the industry ages. Describes the evolution of the entire product category and its associated industry, not a single product of firm. Four distinct phases: introduction, growth, maturity, and decline. Affects the degree of competition firms face, the type of organizational structure, the kind of strategy used, and the appropriate management approaches needed to survive and grow. Introductory phase the first phase in the industry life-cycle model, where many entrepreneurial firms enter the industry, hoping to emerge as a market leader. New industries tend to be highly fragmented (that is, with many small competitors) and characterized by experimentation with novel technologies and business models. Tremendous uncertainty about future of the market.
