Due: Wednesday, October 14, 2020 and worth 50 points or 5% of your grade.
Prepare a few PowerPoint Slides and do a 10 minutes Oral Presentation on your selected Final Project.
Posture and eye contact (10%)
Speaks clearly (20%)
Dress Code: (10%)
TOTAL: 100 %
Oral Presentation counts for 5% of your grade
Industry Life Cycle Stages: Strategic Implications 6
Industry Life Cycle Stages: Strategic Implications
Often, the industry assumes different paces while at the initial growth stages. At times, the organizational growth can retard before maturity, leading to termination of the production process. However, the industry lifecycle incorporates different modern aspects that propel growth, including computers, copiers, and telephone services. Over the recent past, technology has facilitated the spontaneous growth of industries, impacting the organizational strategy. Likewise, internet and information technology have influenced various organizational processes, including production, distribution, and marketing. Therefore, the current industry lifecycle has prestigiously gained momentum that propels growth at a higher velocity, breading new forms of strategic implications. Over the last two decades, the world has experienced a greater shift in goods and services offered to customers due to the impact of the internet and information technology. The current study explores the organizational strategies used to gain competitive advantages at different industry lifecycle stages.
Organizational Strategies at the Introduction Phase
At the start, the organization takes bold steps to inform its clients of its existence in the market. Introduction stage includes a time when customers cannot recognize the firm’s products. Likewise, the firm also operates in an undefined market segment, meeting intense competition from well-established firms (Dagnino et al., 2017). At this stage, the organization is expected to implement a strategy to increase its sales volume, for example, using personnel selling techniques (Gregory et al., 2013). Therefore, the organization experiences rapid technological modification and shift, as it implements various strategies to increase sustainability. As a result, the organization incur losses due to intensive investment, aiming to develop its marketing position.
The introduction stage involves an emphasis on organization success. Therefore, organizations invest in research and development, sales, and marketing to increase their products’ popularity in the market. However, challenges piles up as the organization continues to invest in different segments. For example, the firm might develop new products based on the proposed strategies, failing to find its way into the market. Perhaps this could arise due to inappropriate marketing strategy, leading to little product exposure (Gregory et al., 2013). Besides, losses could arise due to the production of substandard products, failing to meet customers’ specifications and expectations. Therefore, this stage experiences a sluggish growth rate.
Strategies in the Growth
At the growth stage, corporate sales and revenues increase simultaneously. However, the competition also increases due to the organization’s encroachment to other new markets. Therefore, the organization implements strategies that create a barrier between them and the competitors. For example, the organization heavily invests in building consumer preference by emphasizing quality to attract more clients. The strategy helps creates brand loyalty, hence acquiring strong brand recognition in the market (Teixeira, & Junior, 2019). Besides, the organization needs to implement other supportive strategies, such as value-chain activities that aids in marketing and sales (Gregory et al., 2013). Therefore, the organization should continue conducting market research and development to explore its marketing territories.
Strategies in the Maturity Phase
In the maturity stage, the organizational aggregate demand starts declining. At this stage, the firm’s market has saturated due to increased competition leading to a few adopters of its products. The firm has limited potential to grow, and competition also increases. However, the market’s marginal competitors exist at this stage due to a few attractive prospects offered in the market (Kang et al., 2019). Market rivalries also increase in the market due to fierce price competition as every firm maximizes profits. Therefore, the firm should conduct business processes reengineer at this stage, leading to process and operation automation (Gregory et al., 2013). The better way for the firm to remain relevant in the market is to reduce its operational costs using technology.
Strategies in the Declining Phase
The business gains negative acceleration in the declining phase, as all-important developmental strategies had lapsed due to time. At this stage, firms experience tough economic times caused by shortages in finances, fierce competition, and absolute production and marketing strategy. Therefore, fundamental strategies implemented at this stage aims to revive the organizational, operational capacity. Firms can either decide to quit the market or continue making losses (Bauer et al., 2017). However, the firm can stay in the market and consolidate its position using mergers and capital restructuring strategies. Merge strategy can help the company increase its market capture by co-joining operations with one of the market’s successful firms. Likewise, the capital restructuring strategy can help the firm consolidate some of its rights, increasing or reducing its share capital based on the prevailing market conditions (Gregory et al., 2013). However, the firm should ensure that it increases its profits by minimizing costs.
While firms operate in a competitive environment, strategies implemented at different stages of an organizational lifecycle play a significant role in its success. It is prudent for every firm to evaluate its market and implement marketing and production strategies to create a sustainable environment. Often, firms operate in the unforeseeable future; hence implementing sustainable strategies help mitigate long-term risk posed to the business. Therefore, the industry life cycle concept is a critical contingency discipline that highlights various strategies that firms need at different life stages. Corporate managers have the responsibility to ensure that firms successfully execute their mandates. As a result, it is important to identify the four-stage of the industry’s lifecycle.
Bauer, F., Dao, M. A., Matzler, K., & Tarba, S. Y. (2017). How the industry lifecycle sets boundary conditions for M&A integration. Long Range Planning, 50(4), 501-517. https://doi.org/10.1016/j.lrp.2016.09.002
Dagnino, G. B., King, D. R., & Tienari, J. (2017). Strategic management of dynamic growth. The Journal of Range Planning, 50(4), 427-430. https://doi.org/10.1016/j.lrp.2017.06.002
Gregory, D., Lumpkin, G. T., Eisner, A., & McNamara, G. (2013). Strategic management: Text and cases. McGraw-Hill Education.
Kang, T., Baek, C., & Lee, J. D. (2019). Effects of knowledge accumulation strategies through experience and experimentation on firm growth. Technological Forecasting and Social Change, 144, 169-181. https://doi.org/10.1016/j.techfore.2019.04.003
Teixeira, G. F. G., & Junior, O. C. (2019). How to make strategic planning for corporate sustainability?. Journal of Cleaner Production, 230, 1421-1431. https://doi.org/10.1016/j.jclepro.2019.05.063