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Evolution of firms' product strategy over the life cycle of technology-based industries: A case study of the global mobile phone industry, 1980-2009

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  • Claudio Giachetti
  • Gianluca Marchi

Abstract

This paper adopts industry life cycle approaches to understand better the changing rationales for product strategy development in the worldwide mobile phone industry. Based on both primary and secondary sources, we find that mobile phone manufacturers have radically changed their product strategy over the industry life cycle in response to various factors, such as the intense global competition and the need to respond rapidly to changes in technology and mass-consumer preferences. We also find that, when the mobile phone industry entered a stage of shake-out in the 2000s, contrary to the prediction of the classical product-process life cycle model, mobile phone manufacturers focused their strategy not only on process but also on product innovations. The continuous launch of new and advanced product technologies served mainly to stimulate the demand for replacement purchases. We observe this unexpected key role of product innovation to be very strong also in the stage of industry maturity.

Suggested Citation

  • Claudio Giachetti & Gianluca Marchi, 2010. "Evolution of firms' product strategy over the life cycle of technology-based industries: A case study of the global mobile phone industry, 1980-2009," Business History, Taylor & Francis Journals, vol. 52(7), pages 1123-1150.
    • Handle: RePEc:taf:bushst:v:52:y:2010:i:7:p:1123-1150
    DOI: 10.1080/00076791.2010.523464
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    Citations

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    Cited by:

    1. Claudio Giachetti & Gianluca Marchi & Riccardo Corradini, 2012. "UsersÕ ability to anticipate incremental and radical innovation in online communities: The role of product knowledge and willingness to participate in the community life," Working Papers 15, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    2. Lee, Keun & Malerba, Franco, 2017. "Catch-up cycles and changes in industrial leadership:Windows of opportunity and responses of firms and countries in the evolution of sectoral systems," Research Policy, Elsevier, vol. 46(2), pages 338-351.
    3. Claudio Giachetti & Giovanni Battista Dagnino, 2014. "Detecting the relationship between competitive intensity and firm product line length: Evidence from the worldwide mobile phone industry," Strategic Management Journal, Wiley Blackwell, vol. 35(9), pages 1398-1409, September.
    4. Paolo E. Giordani & Francesco Rullani, 2020. "The Digital Revolution and COVID-19," Working Papers 06, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    5. Marlene O’Sullivan, 2020. "Industrial life cycle: relevance of national markets in the development of new industries for energy technologies – the case of wind energy," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 1063-1107, September.
    6. Kornelakis, Andreas & Petrakaki, Dimitra, 2024. "Technological innovation, industry platforms or financialization? A comparative institutional perspective on Nokia, Apple, and Samsung," LSE Research Online Documents on Economics 124386, London School of Economics and Political Science, LSE Library.
    7. Joan Crespo & Raphaël Suire & Jérôme Vicente, 2016. "Network structural properties for cluster long-run dynamics: evidence from collaborative R&D networks in the European mobile phone industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(2), pages 261-282.
    8. Giachetti, Claudio & Marchi, Gianluca, 2017. "Successive changes in leadership in the worldwide mobile phone industry: The role of windows of opportunity and firms’ competitive action," Research Policy, Elsevier, vol. 46(2), pages 352-364.
    9. Gianvito Lanzolla & Alessandro Giudici, 2017. "Pioneering strategies in the digital world. Insights from the Axel Springer case," Business History, Taylor & Francis Journals, vol. 59(5), pages 744-777, July.
    10. Jianxiong Chen & Chung-Cheng Yang, 2021. "Competitive Revenue Strategies in the Medical Consumables Industry: Evidence from Human Resources, Research and Development Expenses and Industry Life Cycle," IJERPH, MDPI, vol. 18(6), pages 1-20, March.
    11. Keun Lee & Moosup Jung, 2015. "Overseas factories, domestic employment, and technological hollowing out: a case study of Samsung’s mobile phone business," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(3), pages 461-475, August.
    12. Gross, Robert & Hanna, Richard & Gambhir, Ajay & Heptonstall, Philip & Speirs, Jamie, 2018. "How long does innovation and commercialisation in the energy sectors take? Historical case studies of the timescale from invention to widespread commercialisation in energy supply and end use technolo," Energy Policy, Elsevier, vol. 123(C), pages 682-699.
    13. Giachetti, Claudio & Mensah, Deborah Tiniwah, 2023. "Catching-up during technological windows of opportunity: An industry product categories perspective," Research Policy, Elsevier, vol. 52(2).
    14. Sang-Gun Lee & Eui-bang Lee & Chang-Gyu Yang, 2014. "Strategies for ICT product diffusion: the case of the Korean mobile communications market," Service Business, Springer;Pan-Pacific Business Association, vol. 8(1), pages 65-81, March.

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