1. Tailoring Strategies to Fit Specific Industry and Company Situations
Chapter 8
Tailoring Strategies to Fit Specific Industry and Company Situations

2. Life Cycle
Unit Sales
Profits

3. Life Cycle
Emerging
Embryonic
Introduction
Growth
Mature
Decline

4. Industry Life Cycle

5. Industry Life Cycle

6. Industry Life Cycle

7. Industry Life Cycle

8. Industry Life Cycle

9. Industry Life Cycle

10. Challenges of Emerging Industries
Uncertain market conditions and characteristics
Competing/unknown proprietary technologies and varied marketing/service/distribution tactics
Lack of complementary products
Limited/poor quality and high costs, which deter acceptance
Low entry barriers
Education of users
Innovators vs. Initial adopters
vs. Mass-market.

11. Alternatives in Emerging Industry
Move fast/early with superior product or technology
Track the Dominant Design
Build alliances/merge with key suppliers or those that provide complementary products to out position rivals
Seek new customer groups, new applications for your product
Make it cheap/easy for early adopters to try/buy your product.

12. High Technology Industries
Battle over technical standard, format, and dominant design
Set by decree, cooperation, public domain, but mostly through consumer choices

13. TV Industry – Paradigm Shifts
Black & White TV

14. Color TV
Black & White TV

15. Color TV
Black & White TV

16. Big Screen TV
Color TV
Black & White TV

17. Big Screen TV
Color TV
Black & White TV

18. HDTV
Big Screen TV
Color TV
Black & White TV

19. HDTV
Incremental evolution included remote controls,cable ready tuners, stereo sound systems, screen-in-a-screen, etc
Big Screen TV
Color TV
Black & White TV

20. Benefits for Standards
Compatibility
Reduce consumer uncertainty
Reduce production costs
Increase in complementary products – Network effects – which greatly enhances sustainability

21. Challenges of Mature Industries
Slow growth fight for market share
Sophisticated buyers
Costs, prices and service critical
Excess capacity and oversupply
Innovation and new uses more difficult
International competition
Falling profitability
Consolidation
Segmentation.

22. Alternatives in Mature Industries
Prune product line
Process innovation & cost reductions in value chain
Sell more to current buyers
Purchase rivals at low prices
Go international.

23. Alternatives in Fragmented Industries
Formula facilities - Tri-Con, Home Depot
Low cost operations - tires, pool suppliers
Become the specialized vendor of choice - oil change, lawn/garden, bar stools
Focus on a customer type - Hooters, Panera
Focus on a geographic segment - Winn-Dixie, Chic-fil-a, Sonic.

24. Other Runner-up Strategies
Vacant Niche Strategy - commuter airline, health foods, religious book stores
Specialists Strategy - Arm & Hammer
Superior Products Strategy - Sub-Zero
Distinctive Image Strategy - Rainforest Cafe
Content Follower – Cadbury-Schweppes