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2020 | OriginalPaper | Buchkapitel

3. How Industries Evolve, Mature, and Revitalize

verfasst von : Jagdish Sheth, Can Uslay, Raj Sisodia

Erschienen in: The Global Rule of Three

Verlag: Springer International Publishing

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Abstract

Industries go through a similar process of evolution in pursuit of growth and efficiency. This chapter highlights that process and discusses each stage of their life cycle: start up, growth, maturity, and aging. The start-up phase is marked by significant growth and a lack of organization. Those who can create efficiency survive. In the growth phase, the challenge is to gain market share while becoming a full-line generalist. This is done by adopting one of the following strategies: market penetration, market expansion, complementary diversification, or product expansion. The maturity phase is when revitalization and the adoption of new technologies must occur for survival. Efficiency through scale typically results from the following scenarios: government mandates, regulated monopoly, shakeouts and mergers, and shared standards/costs. After an industry achieves scale efficiency and scope capabilities, it must evolve to revitalize to avoid death. The key drivers of market revitalization are substitute technologies, changing demographics, changing policy and regulation, and emerging markets. Emergence of middle-class markets presents significant opportunities for market revitalization in the twenty-first century.

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Vorheriges Kapitel Strategies for Generalists, Specialists, and Ditch Dwellers

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Titel: How Industries Evolve, Mature, and Revitalize
verfasst von: Jagdish Sheth
Can Uslay
Raj Sisodia
Verlag: Springer International Publishing
Buch: The Global Rule of Three
Print ISBN: 978-3-030-57472-7

Electronic ISBN: 978-3-030-57473-4

Copyright-Jahr: 2020
DOI: https://doi.org/10.1007/978-3-030-57473-4_3