第17讲竞争战略在向行业的成熟转型(英文).ppt

2019 12 23 JiaLiangding 1 第十七讲CompetitiveStrategyDuringtheTransitiontoIndustryMaturity 1 1IndustryChangesDuringtheTransitiontoMaturity1 2SomeStrategicImplicationsofIndustryTransition1 3StrategicPitfallsDuringtheTransitiontoMaturity1 4OrganizationalImplicationsofIndustryMaturity 2019 12 23 JiaLiangding 2 1 1IndustryChangesDuringtheTransitiontoMaturity Aspartoftheirevolutionaryprocess manyindustriespassfromperiodsofrapidgrowthtothemoremodestgrowthofwhatiscommonlycalledindustrymaturity Industrymaturitydoesnotoccuratanyfixedpointinanindustrydevelopment anditcanbedelayedbyinnovationsorotherevents Moreover inresponsetostrategicbreakthroughs matureindustriesmayregaintheirrapidgrowthandtherebygothroughmorethanonetransitiontomaturity 2019 12 23 JiaLiangding 3 Importantchanges Slowinggrowthmeansmorecompetitionformarketshare Firmsintheindustryincreasinglyaresellingtoexperienced repeatedbuyers Competitionoftenshiftstowardgreateremphasisoncostandservice Thereisatopping outprobleminaddingindustrycapacityandpersonnel Manufacturing marketing distributing selling andresearchmethodsareoftenundergoingchange 2019 12 23 JiaLiangding 4 Newproductsandapplicationsarehardertocomeby Internationalcompetitionincreases Industryprofitsoftenfallduringthetransitionperiod sometimestemporarilyandsometimespermanently Dealers marginsfall buttheirpowerincreases 2019 12 23 JiaLiangding 5 1 2 SomeStrategicImplicationsofIndustryTransition OverallCostLeadershipVersusDifferentiateVersusFocus theStrategicDilemmaMadeAcutebyMaturity Rapidgrowthtendstomaskstrategicerrorsandallowthatstrategicexperimentationbehighandawidevarietyofstrategiesbeabletocoexist Strategicsloppinessisgenerallyexposedbyindustrymaturity however maturitymayforcecompaniestoconfront oftenforthefirsttime theneedtochooseamongthethreegenericstrategies Itbecomesamatterofsurvival 2019 12 23 JiaLiangding 6 SophisticatedCostAnalysisCostanalysisbecomesincreasinglyimportantinmaturitytorationalizetheproductmixandpricecorrectly Summary anenhancedlevelof financialconsciousness alongavarietyofdimensionsisoftennecessaryinmaturity whereasinthedevelopmentalperiodoftheindustryareassuchasnewproductsandresearchmayhaverightlyheldcenterstage 2019 12 23 JiaLiangding 7 ProcessInnovationandDesignforManufactureTherelativeimportanceofprocessinnovationsusuallyincreasesinmaturity asdoesthepayofffordesigningtheproductanditsdeliverysystemtofacilitatelower costmanufacturingandcontrol IncreasingScopeofPurchases BuyCheapAssets 2019 12 23 JiaLiangding 8 BuyerSelectionpurchasingneedsversuscompanycapacities growthpotential structuralposition intrinsicbargainingpower propensitytoexercisethisbargainingpowerindemandinglowprices costofservicing DifferentCostCurves CompetingInternationally ShouldTransitionBeAttemptedAtAll 2019 12 23 JiaLiangding 9 1 3StrategicPitfallsDuringtheTransitiontoMaturity Acompany sself perceptionsanditsperceptionoftheindustry Theself perceptions suchas wearethequalityleader weprovidesuperiorcustomerservice maybeincreasinglyinaccurateastransitionproceeds buyers prioritiesadjust competitorsrespondtonewindustryconditions Similarly firms assumptionsabouttheindustry competitors buyers andsuppliersmaybeinvalidatedbytransition 2019 12 23 JiaLiangding 10 Caughtinthemiddle Transitionoftensqueezesouttheslackthathasmadethisstrategyviableinthepast Thecashtrap investmentstobuildshareinamaturemarket Arelatedpitfallisplacingheavyattentiononrevenuesinthematuringmarketinsteadofonprofitability 2019 12 23 JiaLiangding 11 Givingupmarketsharetooeasilyinfavorofshort runprofits Inthefaceoftheprofitpressuresintransition thereseemstobeatendencyforsomecompaniestotrytomaintaintheprofitabilityoftherecentpast whichisdoneattheexpenseofmarketshareorbyforegoingmarketing R D andotherneededinvestments whichinturnhurtsfuturemarketposition Aperiodoflowerprofitsmaybeinevitablewhileindustryrationalizationoccurs andacoolheadisnecessarytoavoidoverreaction 2019 12 23 JiaLiangding 12 Resentmentandirrationalreactiontopricecompetition wearenotcompeteonprice Itisoftendifficultforfirmstoaccepttheneedforpricecompetitionafteraperiodinwhichithasnotbeennecessary thenavoidingitmayhavebeenasacredrule Somemanagersevenviewitasunseemlyorbeneaththeirdignity Thiscanbeadangerousreactiontotransition 2019 12 23 JiaLiangding 13 Resentmentandirrationalreactiontochangesinindustrypractices theyarehurtingtheindustry Theresistancecanputafirmseriouslybehindinadaptingtonewcompetitiveenvironment 2019 12 23 JiaLiangding 14 Overemphasison creative new productsratherthanimprovingandaggressivelysellingexistingones Theonsetofmaturityoftenmeansthatnewproductsandapplicationsarehardertocomeby Itisusuallyappropriatethatthefocusofinnovativeactivityshouldchange puttingstandardizationratherthannewnessandfinetuningatapremium 2019 12 23 JiaLiangding 15 Clingingto highquality asanexcusefornotmeetingaggressivepricingandmarketingmovesofcompetitors Highqualitycanbeacrucialcompanystrength butqualitydifferentialshaveatendencytoerodeasanindustrymatures Overhangingexcesscapacity 2019 12 23 JiaLiangding 16 1 4OrganizationalImplicationsofIndustryMaturity Moreattentiontocosts customerservice andtruemarketing asopposedtoselling mayberequired Reducedattentiontointroducingnewproductsversusrefiningoldonesmaybenecessary Less creativity andmoreattentiontodetailandpragmatismisoftenwhatisneededinthematurebusiness Theseshiftsincompetitivefocusobviouslyrequirechangesinorganizationalstructureandsystemstosupportthem particularlyintheareaofcontrolandmotivationalsystems 2019 12 23 JiaLiangding 17 Tighterbudgeting strictercontrol andnewperformance basedincentivesystemsmaywellberequiredinthematurebusiness allmoreformalthanthoseusedpreviously Controloffinancialassetssuchasinventoryandaccountsreceivablemaytakeongreaterimportance Morecoordinationacrossfunctionsandamongmanufacturingfacilitiesmustoftenoccurforthecompanytobecostcompetitive 2019 12 23 JiaLiangding 18 Afirmmustbepreparedtoreeducateandremotivatepersonnelatalllevels inordertoreduceresistancetopricecompetition tonewreportingrequirements tonewcontrols toneworganizationalrelationships toalossinpersonnelautonomy etc 2019 12 23 JiaLiangding 19 Generalmanagementmustbeawareofsubtlechangesinthemotivationalclimateintheorganization Inthegrowthperiod therearemanyopportunitiesforadvancement greatintrinsicjobsatisfaction butinthematurecompetitiveenvironment thereislessgrowth lessglamour lessexcitement andthespiritofpioneeringanduniquenesstendstofade 2019 12 23 JiaLiangding 20 Generalmanagementmustfacewith Scaled downexpectationsforfinancialperformance Thestandardsforacceptablegrowthandprofitsmustoftenbereducedinmanagers minds Ifmanagerstrytomeettheoldstandards theymaytakeactionsthatareextremelydysfunctionalforthelong runhealthofthefirmunlessithasanextremelystrongmarketposition Moredisciplinefromtheorganization 2019 12 23 JiaLiangding 21 Scaled downexpectationsforadvancement Pastratesofpersonaladvancementareunlikelytobepossibleinthemorematureenvi