Assignment for the article of "How Industries Change?" by Anita McGahan
Assignment for the article of "How Industries Change?" by Anita McGahan
Harvard Business Review, Oct 2004
1. Why need to understand change in the industry?
Understanding change in the industry is very important. Unless one understands how the whole industry is faring and changing, making investments within one’s organization for the purpose of maximizing the firm’s successes and profitability could backfire. Companies may misinterpret signs and formulate irrelevant assumptions and actions which might bring the entire organization in trouble. As they say, there is no one best strategy that will work across all industries, being able to understand where the phase of the industry is heading will give a head-start and enable the organization to determine which strategies will likely to succeed and which have more risk of failing. If the business recognize early enough, the trajectory the industry is in, it would have time to develop strategic options that can be exercised in the near future.
Cunning companies will be able plan ahead and employ staggered strategy, pursuing gradual but regular improvements to establish business activities and conducting selective trials and experiments in developing new assets.
Sufficient understanding and knowledge on where the phase of the industry is heading will prevent the organization in impulsively abandoning their established positions and mistakenly employing a wrong non-strategic move, which will place the business in a risk of being unprofitable. Finally, this understanding will provide support to companies in successfully preserving their valuable assets and maintaining good relationship with its stakeholders.
2. Discuss the trajectories of change? Discuss similarities and differences of these changes in the industry.
All industries follow distinctive change trajectories. These trajectories sets boundaries by which companies can align their strategies in so as to succeed in realizing their goals and
Harvard Business Review, Oct 2004
1. Why need to understand change in the industry?
Understanding change in the industry is very important. Unless one understands how the whole industry is faring and changing, making investments within one’s organization for the purpose of maximizing the firm’s successes and profitability could backfire. Companies may misinterpret signs and formulate irrelevant assumptions and actions which might bring the entire organization in trouble. As they say, there is no one best strategy that will work across all industries, being able to understand where the phase of the industry is heading will give a head-start and enable the organization to determine which strategies will likely to succeed and which have more risk of failing. If the business recognize early enough, the trajectory the industry is in, it would have time to develop strategic options that can be exercised in the near future.
Cunning companies will be able plan ahead and employ staggered strategy, pursuing gradual but regular improvements to establish business activities and conducting selective trials and experiments in developing new assets.
Sufficient understanding and knowledge on where the phase of the industry is heading will prevent the organization in impulsively abandoning their established positions and mistakenly employing a wrong non-strategic move, which will place the business in a risk of being unprofitable. Finally, this understanding will provide support to companies in successfully preserving their valuable assets and maintaining good relationship with its stakeholders.
2. Discuss the trajectories of change? Discuss similarities and differences of these changes in the industry.
All industries follow distinctive change trajectories. These trajectories sets boundaries by which companies can align their strategies in so as to succeed in realizing their goals and