management
tiancaigu
4.pptSTRATEGIC MANAGEMENT
MGMT 490
Yongseok Jang, Ph.D.
Assistant Professor of Entrepreneurship
Chapter 7
Business Strategy II
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Innovation and the Industry Life Cycle
Exhibit 7.4 Lifecycle of the Smartphone Industry
in Emerging and Developed Economies
Exhibit 7.6 Growth Stage: Product vs. Process Innovation
How does the Industry Life Cycle help firms be successful?
Chapter 7 explained how innovation is important for a firm to gain an competitive advantage. I have seen however that the advantage gained from innovation often has a short life and sets bars very high for the firm. Apple for example was a leader and with the loss Steve Jobs has fallen short of some consumer expectations. Are there any companies who have sustained a competitive advantage or is innovation set up for inevitable failure and resurgence?
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Exhibit 7.7 Crossing the Chasm
Many innovators do not successfully transition from one stage of the industry life cycle to the next.
SOURCE: Adapted from G.A. Moore (1991), Crossing the Chasm: Marketing and Selling Disruptive Products to Mainstream Customers (New York: HarperCollins), p. 17.
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Exhibit 7.8 Crossing the Chasm:
Applied to the Mobile Phone Industry
Jump to Appendix 6 long image description
Q: What are some other differing characteristics between the early and the late majorities
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Radical vs. Incremental Technological Change
- Incremental
:small improvements
- Radical
:fundamentally new ways
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Q: What is the difference between incremental and radical innovation?
Modular vs. Architectural
- A modular innovation
: components but not the linkages
- An architectural innovation
: the linkages
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Q: What is the difference between architectural and disruptive innovation?
Some other questions
Jump to Appendix 6 long image description
Q: What is the main different between business-level strategy and corporate strategy?
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