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Chapter 3

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Administrative Studies
ADMS 1000
Sadia Malik

Chapter 3: The Competitive Context Industry:  Businesses that may have similar resources, technology or consumers The Industrial Evolution:  Industry Life Cycle:  Introduction  Growth  Maturity  Decline 1. Industry Emergence & Creation  New industries are highly uncertain and risky and some never make it past the early stage (e.g. satellite communications).  Legitimacy: Socio-political legitimacy & Cognitive legitimacy  Low intra-industry rivalry  Slow growth  Organic structures 2. Growth (and Shakeout) Stage  The growth stage begins once there is convergence around a dominant design or technical standard i.e.  de jure standard and a de facto standard  Organizations whose approach does not conform to the dominant model either change or exit during a shakeout  High growth and reduced uncertainty of the market attracts larger, established firms into the industry  Standardi
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