Business Strategy Chapter 5 Competitive Life Cycle

Growth results from scaling new products and services up the S-curve and also occurs from the continuous creation of new S-curves. So in one sense, the purpose of strategy is to create new S-curves
The CLC is split into three phases consistent with the S-curve: an emergent phase, a growth phase, and a mature phase.
Demarking each of the three phases associated with a single S-curve are transitory inflection points: disruption, annealing, and shakeout.
After a disruption occurs, the new S-curve begins and we enter the emergent phase. This period is often characterized by what others have referred to as the “era of ferment” as businesses experiment with various designs.
The emergent phase ends as customer adoption accelerates and the product concept solidifies around a core set of design features.
Annealing typically gives way to the growth phase. As uncertainty in the technology or design is reduced, more customers are willing to purchase, leading to significant growth in demand. Business focus typically shifts from development to scaling.
As the growth phase winds down, when marginal growth rates begin declining, a competitive shakeout often ensues. Marginally competitive firms exit the market and a handful of dominant players emerge. Shakeouts can vary in intensity.
After the shakeout, industries enter the mature phase. Growth is still possible, but it is likely to be less pronounced and often comes from stealing market share from competitors. When the market continues to support a number of rivals, competition can be particularly fierce with strong downward price pressure.
Total quality management and Six Sigma programs are common.
打赏
Liked it? Take a second to support admin on Patreon!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.