10 Jan

Facing high competition for your industry Just follow simple steps

As the time pass by and industry goes through its life cycle, the nature of competition keeps on shifting. The duration of stages vary from industry to industry and it is often not clear as to what stage of the life cycle, an industry is. The industrial growth doesn’t always go through the usual S-shaped pattern at all. Sometimes industries skip maturity, passing straight from growth to decline and sometimes it all of a sudden revitalizes.

The growth curve of a company can also be altered by new product launches and innovations, repositioning and also by extending it in a variety of ways. Also the nature of competition associated with each stage of the life cycle generally varies from one industry to the other.
The emerging industries are generally the newly formed or the reformed industries that have been created by the technological innovations, shift in the relative cost relationships, emergence of new consumer needs, or the other economic and sociological changes that elevate a new product or service to the level of a potentially viable business opportunity.

1.The essential characteristics of an emerging industry from the view point of formulating strategy are that there are no rules of the game. 

2.The competitive problem in an emerging industry is that all the rules must be established such that a firm can cope with and prosper under time.  The absence of rules is both the risk and a source of opportunity; in any case it must be managed.

3.The emerging industries should try to win the early race for the industry leadership with risk taking entrepreneurship and a bold and creative strategy.

4.Broad or focused differentiation strategies used in technological or product superiority typically offers the best chance for early competitive advantage.

5.Also as the technological uncertainty clears and a dominant technology emerges, adopt it quickly and form strategic alliances with the key suppliers to gain access to specialized skills, technological capabilities and critical materials or components.

6.These industries should try to capture any first mover advantages associated with early commitments to upcoming technologies collaborating with the most capable suppliers, expanding product selection, improving styling and  getting a good reputation in new distribution channels.

7.The industries should pursue new user applications, new customer groups and entry into new geographical areas (perhaps utilizing strategic partnerships or joint ventures of financial resources are constrained  

In order to be successful in an emerging industrial environment, the companies usually have to pursue one or more of the above said strategic avenues.

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