Chapter 10 - Industry evolution. This chapter presents the following content: The industry life cycle; industry structure, competition, and success factors over the life cycle; anticipating and shaping the future. | Industry Evolution The industry life cycle Industry structure, competition, and success factors over the life cycle. Anticipating and shaping the future. OUTLINE 37 The Industry Life Cycle Drivers of industry evolution : demand growth creation and diffusion of knowledge Introduction Growth Maturity Decline Industry Sales Time 38 Product and Process Innovation Over Time Time Rate of innovation Product Innovation Process Innovation 39 Standardization of Product Features in Cars FEATURE INTRODUCTION GENERAL ADOPTION Speedometer 1901 by Oldsmobile Circa 1915 Automatic transmission 1st installed 1904 Introduced by Packard as an option, 1938. Standard on Cadillacs early 1950s Electric headlamps GM introduces, 1908 Standard equipment by 1916 All-steel body GM adoptes 1912 Standard by early 1920s All-steel enclosed body Dodge, 1923 Becomes standard late 1920s Radio Optional extra 1923 Standard equipment, 1946 Four-wheel drive Appeared 1924 Only limited availability by 1994 Hydraulic brakes Introduced 1924 Became standard 1939 Shatterproof glass 1st used 1927 Standard features in Fords 1938 Power steering Introduced 1952 Standard equipment by 1969 Antilock brakes Introduced 1972 Standard on GM cars in 1991 Air bags GM introduces, 1974 By 1994 most new cars equipped with air bags 41 How Typical is the Life Cycle Pattern? Technology-intensive industries (. pharmaceuticals, semiconductors, computers) may retain features of emerging industries. Other industries (especially those providing basic necessities, . food processing, construction, apparel) reach maturity, but not decline. Industries may experience life cycle regeneration. Sales Sales 1900 ‘50 ‘60 ‘90 1930 50 60 90 MOTORCYCLES TV’s Life cycle model can help us to anticipate industry evolution—but dangerous to assume any common, pre-determined pattern of industry development. Color B&W Portable HDTV ? 42 Evolution of Industry Structure over the Life Cycle INTRODUCTION GROWTH MATURITY DECLINE DEMAND Affluent buyers | Industry Evolution The industry life cycle Industry structure, competition, and success factors over the life cycle. Anticipating and shaping the future. OUTLINE 37 The Industry Life Cycle Drivers of industry evolution : demand growth creation and diffusion of knowledge Introduction Growth Maturity Decline Industry Sales Time 38 Product and Process Innovation Over Time Time Rate of innovation Product Innovation Process Innovation 39 Standardization of Product Features in Cars FEATURE INTRODUCTION GENERAL ADOPTION Speedometer 1901 by Oldsmobile Circa 1915 Automatic transmission 1st installed 1904 Introduced by Packard as an option, 1938. Standard on Cadillacs early 1950s Electric headlamps GM introduces, 1908 Standard equipment by 1916 All-steel body GM adoptes 1912 Standard by early 1920s All-steel enclosed body Dodge, 1923 Becomes standard late 1920s Radio Optional extra 1923 Standard equipment, 1946 Four-wheel drive Appeared 1924 Only limited availability by 1994 Hydraulic brakes .
