Tailoring Strategies to Fit Specific Industry and Company Situations

Life Cycle Unit Sales Profits

Life Cycle Emerging Embryonic Introduction Growth Mature Decline

Industry Life Cycle

Challenges of Emerging Industries Uncertain market conditions and characteristics Competing/unknown proprietary technologies and varied marketing/service/distribution tactics Lack of complementary products Limited/poor quality and high costs, which deter acceptance Low entry barriers Education of users Innovators vs. Initial adopters vs. Mass-market.

Alternatives in Emerging Industry Move fast/early with superior product or technology Track the Dominant Design Build alliances/merge with key suppliers or those that provide complementary products to out position rivals Seek new customer groups, new applications for your product Make it cheap/easy for early adopters to try/buy your product.

High Technology Industries Battle over technical standard, format, and dominant design Set by decree, cooperation, public domain, but mostly through consumer choices

Benefits for Standards Compatibility Reduce consumer uncertainty Reduce production costs Increase in complementary products – Network effects – which greatly enhances sustainability

Challenges of Mature Industries Slow growth fight for market share Sophisticated buyers Costs, prices and service critical Excess capacity and oversupply Innovation and new uses more difficult International competition Falling profitability Consolidation Segmentation.

Alternatives in Mature Industries Prune product line Process innovation & cost reductions in value chain Sell more to current buyers Purchase rivals at low prices Go international.

Fragmented Industries Low entry barriers Lack of economies of scale High segmentation Local Advantages Diverse preferences

Alternatives in Fragmented Industries Formula facilities - Low cost operations - Become the specialized vendor of choice - Focus on a customer type - Focus on a geographic segment -

Other Runner-up Strategies Vacant Niche Strategy - Specialists Strategy - Superior Products Strategy - Distinctive Image Strategy - Content Follower –