Race Against Time: Staying Agile in Rapidly Developing Industries

Roberto S. Vassolo (), Natalia Weisz () and Benjamin Laker ()
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Roberto S. Vassolo: Universidad Austral
Natalia Weisz: Universidad Austral
Benjamin Laker: University of Reading

Chapter Chapter 5 in Advanced Strategic Management, 2024, pp 69-82 from Springer

Abstract: Abstract In this chapter, we focus on the growth stage in the industry life cycle, emphasizing strategic entry times and growth rates crucial for securing a competitive position at maturity. We introduce the paradox of company turnover, highlighting the high exit rates of seemingly successful enterprises that are seldom replaced, providing historical examples. We dissect significant competitive battles of the past, including Apple’s fluctuating fortunes in personal computers and smartphones. Emphasizing the critical nature of the effectiveness of competitive isolation mechanisms, we delineate the eventual fate of businesses in the industry. Supply-side and demand-side isolating mechanisms, alongside two-sided mechanisms, define the landscape, with the latter often fostering more significant consolidation. We also consider the broader implications of these dynamics for pricing, sales, and industry consolidation, drawing on the research of Klepper and Graddy. Ultimately, in this chapter, we aim to equip business strategists with insights to navigate industry growth and emerge as market leaders.

Keywords: Industry shakeout; Order of entry advantages; Supply-side competitive barriers; Demand-side competitive barriers; Two-sided competition; Time competition; Business scalability (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-57419-1_5

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DOI: 10.1007/978-3-031-57419-1_5

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