Chapter 3: The Competitive Context
Businesses that may have similar resources, technology or consumers
The Industrial Evolution:
Industry Life Cycle:
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
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