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Race Against Time: Staying Agile in Rapidly Developing Industries

In: Advanced Strategic Management

Author

Listed:
  • Roberto S. Vassolo

    (Universidad Austral)

  • Natalia Weisz

    (Universidad Austral)

  • Benjamin Laker

    (University of Reading)

Abstract

In this chapter, we focus on the growth stage in the industry life cycle, emphasizing strategic entry times and growth rates crucial for securing a competitive position at maturity. We introduce the paradox of company turnover, highlighting the high exit rates of seemingly successful enterprises that are seldom replaced, providing historical examples. We dissect significant competitive battles of the past, including Apple’s fluctuating fortunes in personal computers and smartphones. Emphasizing the critical nature of the effectiveness of competitive isolation mechanisms, we delineate the eventual fate of businesses in the industry. Supply-side and demand-side isolating mechanisms, alongside two-sided mechanisms, define the landscape, with the latter often fostering more significant consolidation. We also consider the broader implications of these dynamics for pricing, sales, and industry consolidation, drawing on the research of Klepper and Graddy. Ultimately, in this chapter, we aim to equip business strategists with insights to navigate industry growth and emerge as market leaders.

Suggested Citation

  • Roberto S. Vassolo & Natalia Weisz & Benjamin Laker, 2024. "Race Against Time: Staying Agile in Rapidly Developing Industries," Springer Books, in: Advanced Strategic Management, chapter 0, pages 69-82, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-57419-1_5
    DOI: 10.1007/978-3-031-57419-1_5
    as

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