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Sector and Strategy Change - Coggle Diagram
Sector and Strategy Change
Age of the Sector
Sectors evolve over time: Introduction, Growth, Maturity, Decline
Example: Video game industry (from Atari to modern consoles)
Target audience evolved: from children → adults with higher purchasing power
Constant adaptation is essential
Key phrase: "Change is the only constant"
Sector Life Cycle
Introduction:
Product innovation to enter the market
Growth:
Scale up manufacturing capacity
Maturity:
Cost efficiency strategies
Asset restructuring
Product/market cuts
Economies of scale
Customer segmentation
Decline:
Capacity adjustment
Predictable decline
Exit barriers
Divestment
Strategy by Stage
Early stages → focus on product innovation
Later stages → focus on efficiency and profitability
Strategy must match the sector’s current stage
Example: Pandemic forced fast-food to make delivery a KSF
Leadership Influence
CEO’s style affects decisions and strategy
Example: Bill Gates and Steve Jobs transformed their industries
Alfred Chandler’s “Visible Hand” concept
Leadership sets the tone for organizational context and competition
Strategic Context
The sector defines the strategic frame
External environment affects your:
Purpose
Processes
Value proposition
Join industry chambers:
Access to trends, negotiations, industry-wide decisions
Act collectively against external threats
Affordable memberships (e.g., MXN $3,000/year depending on company size)
International Impact
One individual can shift entire industries (e.g., Jack Ma with Alibaba)
Influence on:
Trade agreements
Fiscal & monetary policies
Tariffs and regulations
Active participation > passive observation
Create the Future
Key quote: "The key is not in anticipating the future but in creating the future"
— Gary Hamel
Don’t just adapt; innovate and redefine the industry
Avoid the “Red Ocean” (bloody competition)
Combine efficiency + attractiveness to build strong market positioning