ADMS 1000 Study Guide - Final Guide: Foreign Direct Investment, De Jure, De Facto

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Peter Tsasis

Document Summary

The lifecycle of all industries follows an inverted u shape. Four phases in the industry lifecycle: introduction. Large firms lag or do not enter the market yet. At the end of the introduction stage, a dominant model emerges. De facto emerges out of common use. Firms that are unable to follow this model leave the market. Follows after the peak of the inverted u. More economies of scale and less innovation: maturity. Competition intensifies and businesses strive to further diversify their products from competition. Competition becomes fierce, businesses have 5 basic alternatives. Keep investing in business in hopes that the competitors will exit. Niche strategy find a segment that may not decline as rapidly, and get a competitive advantage in it. Harvest profits reduce costs and squeeze as much as possible out. Exit early sell everything and leave. Can be: competence enhancing, competence destroying. Discontinuities appear at rare intervals and can dramatically affect industry structure.