MGTA05H3 Chapter Notes - Chapter D: Public Knowledge, Dominate, De Facto Standard

• School: UTSC
• Department: Management (MGT)
• Course: MGTA05H3
• Professor: Murphy Lawrence

Document Summary

Typical s-curve patter of how sales volume grows, stabilizes, and declines as an industry develops: the pace of an industry"s evolution along its lifecycle is closely related to the evolution of technology within the industry. Introductory phase: many entrepreneurial firms enter the industry, hoping to emerge as a market leader. Growth phase: the firms whose approach does not conform to the emerging standard exit the industry during a shakeout widespread diffusion of an industry or dominant design. Mature phase: the market stabilizes and sales grow more slowly; firms must become more efficient producers to lower costs and compensate for slower revenue growth; often achieved through mergers and acquisition higher industry concentration. Decline phase: aggregate sales drop and rivalry further heats up due to more mergers and exit of inefficient firms. Early years of an industry uncertainty about the future of the market: no dominant technology or business model uncertain success.