Description
Strategy in Emerging Industries
Strategy in Emerging Industries
What are emerging industries?
Newly formed or re-formed industries
On account of
Technological innovations New consumer needs Shifts in relative cost relationships Economic / sociological changes creating a potentially viable opportunity
Characteristics
No rules of the game
Both a risk and an opportunity
Structural Environment
Technology uncertainty
Strategic uncertainty High initial costs but steep cost reductions
Structural Environment
Embryonic companies & spin-offs
First time buyers Short time horizons Subsidy
Constraints on development
Non-availability of raw material & rapid escalation in prices Absence of standardization Customer confusion Credibility with financial community Regulatory approval
Response of threatened entities
An emerging industry will almost always threaten some entity. Response can be
Political arena Collective bargaining Cost/price reduction
Strategic choices
Uncertainty, risks yes; but degrees of freedom are the greatest. Shaping industry structure Industry development
Choosing time of entry
Early entrants
Risks Rewards
Forecasting in emerging industries
Technology
Markets
Competition
doc_141070264.ppt
Strategy in Emerging Industries
Strategy in Emerging Industries
What are emerging industries?
Newly formed or re-formed industries
On account of
Technological innovations New consumer needs Shifts in relative cost relationships Economic / sociological changes creating a potentially viable opportunity
Characteristics
No rules of the game
Both a risk and an opportunity
Structural Environment
Technology uncertainty
Strategic uncertainty High initial costs but steep cost reductions
Structural Environment
Embryonic companies & spin-offs
First time buyers Short time horizons Subsidy
Constraints on development
Non-availability of raw material & rapid escalation in prices Absence of standardization Customer confusion Credibility with financial community Regulatory approval
Response of threatened entities
An emerging industry will almost always threaten some entity. Response can be
Political arena Collective bargaining Cost/price reduction
Strategic choices
Uncertainty, risks yes; but degrees of freedom are the greatest. Shaping industry structure Industry development
Choosing time of entry
Early entrants
Risks Rewards
Forecasting in emerging industries
Technology
Markets
Competition
doc_141070264.ppt