Group 1 Dynamic Strategy ICI-33_Development-and-Implementation-of…
Group 1 Dynamic Strategy
Perspectives on Rents
Firm structure matters
Barriers to imitation
Markets are dynamic
Industry structure matters
Barriers to entry
Competitve Life Cycle Phase
Why incumbent fail or survive?
Worse positioned than entrants
Can't find the change necessary to succeed→core capabilities becoming core rigidities
Select not to change
Fundamental tradeoff between incumbent firms and entrants & unwilling to cannibalize
No better positioned than new entrants
Innovation render existing capabilities valueless
Customers desire assurances of incumbent firms
Brands & Reputation
Leverage capabilities & Complementary resources to their advantage
Competitive advantage make up for deficiencies
Innovation requires extensive capital and expertise
Not easy for entrants
"Dynamic Capability" to adjust to changing conditions
they can very much vary in their intensity depending on the individual industry segment.
The end result was a lot fewer number of players within the industry than we had just a few years before.
The growth phase, where it really takes off and establishes itself in the market
dominant design emerge...
pioneering firms often whither away
only a few large, efficient firms remain
innovation shift to process, delivery,service
a disruption occurs…
A new technology or business model emerges.
Exogenous technological change. :warning:(technology push)
it's kind of a mix of both. Technology push and demand pull, interacting with one another to drive market forward.
Lead to the emergence of these new technologies or business models.
Changes in market due to consumer shifts. :warning:(Demand pull)
:check:the emergence of a dominant design
:warning:an era of ferment?
need to be checked
where a new technology emerges and quickly diffuses through the market?
need to quickly enter that market and quickly try to capture market share
where we might think there'd be a longer time period?
a market where you might be able to wait and see
Example of Dynamic Strategy
Over time profits decrease as markets continue to change and evolve.
“Change is the only constant.”
Blockbuster V.S. Netflix
Video Rental Chain
Mail order service
carpooling and ridesharing