ADMS 1000 Lecture 4: week 4

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Eytan Lasry

Document Summary

Number of competitors follows and inverted u-shaped curve. Each stage affect competition, organizational structure, strategy so that different types of firms tend to be leaders at different stanges. Nascent industries are highly uncertain and risky and some never make it past the early stage (e. g. satellite communications). Early entrants are small, entrepreneurial firms with a high degree of technological innovation as competitors search for the industry"s dominant design and standard (e. g. 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. The growth stage begins once there is convergence around a dominant design or technical standard. Organizations whose approach does not conform to the dominant model either change or exit during a shakeout e. g. winter standard (ms + intel) in pcs. High growth and reduced uncertainty of the market attracts larger, established firms into the industry.