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Lecture 4

week 4

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York University
Administrative Studies
ADMS 1000
Eytan Lasry

ADMS 1000 Week 4Eytan LasryOctober 6 2011The CompetitiveTechnological ContextIndustrial and Technological EvolutionHow does competition evolve over time in industries How does technological change and innovation affect competitionChapter 3 page 4356Chapter 4 page 6570Case Beer Industry handout Newspapers page 63Industrial EvolutionNumber of competitors follows and inverted Ushaped curve Industry sales follows scurveLifecycle stagesEmergenceShakeoutgrowthMaturity DeclineEach stage affect competition organizational structure strategy so that different types of firms tend to be leaders at different stanges Industry Emergence and CreationNew industries emerge following innovationsTechnological eg biotechnologyRegulatory eg satellite radio Nascent industries are highly uncertain and risky and some never make it past the early stage eg satellite communications Early entrants are small entrepreneurial firms with a high degree of technological innovation as competitors search for the industrys dominant design and standard eg automobiles New industries seek legitimacy sociopolitical and cognitive through collective action and institutional entrepreneurship Despite the increased competition the entry of large incumbent firms into new markets helps legitimize the new industry Characteristics of the emergence phase
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