ADMS 1000 Lecture Notes - Dominant Design, Unbridled, Market Power

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Len Karakowsky

Document Summary

Chapter 3: the competitive context (pages 43 56) Introductory phase sees many entrepreneurial firms enter the industry, hoping to emerge as a market leader. As the industry comes together around a particular approach and this dominant model is adopted by customers, suppliers, and other key constituents, the firms whose approach does not conform to the emerging standards exit the industry during a shakeout. Firms must become more efficient producers to lower costs and compensate for slower revenue growth. This is often achieved through mergers and acquisitions that result in higher industry concentration. In the decline phases, aggregate sales drop and rivalry further heats up as the industry undergoes greater consideration through more mergers and the exit of inefficient firms. The introduction phase: industry emergence and creation: new industries emerge as the result of changes (usually technology or regulatory) that create opportunities for entrepreneurs to leverage novel combinations of resources to develop innovative products, services or processes.