ADMS 1000 Chapter Notes - Chapter 3: De Jure, Technical Standard, Dominant Design

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Sadia Malik

Document Summary

Businesses that may have similar resources, technology or consumers. New industries are highly uncertain and risky and some never make it past the early stage (e. g. satellite communications). Organic structures: 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. Standardization of products and processes leads to economies of scale and less innovation as firms focus on sales and marketing to capture market share: industry maturity stage. Market growth begins to slow down; very little entry & rivalry becomes fierce among remaining firms. Products become commoditized/undifferentiated and innovations are incremental. Successful firms are efficient and mechanistic: the decline stage. Firms can pursue 5 different strategies to cope: maintain industry leadership.