第17讲竞争战略在向行业的成熟转型(英文)

第十七讲CompetitiveStrategyDuringtheTransitiontoIndustryMaturity1.1IndustryChangesDuringtheTransitiontoMaturity1.2SomeStrategicImplicationsofIndustryTransition1.3StrategicPitfallsDuringtheTransitiontoMaturity1.4OrganizationalImplicationsofIndustryMaturity1/28/20241JiaLiangding1.1IndustryChangesDuringtheTransitiontoMaturityAspartoftheirevolutionaryprocess,manyindustriespassfromperiodsofrapidgrowthtothemoremodestgrowthofwhatiscommonlycalledindustrymaturity.Industrymaturitydoesnotoccuratanyfixedpointinanindustrydevelopment,anditcanbedelayedbyinnovationsorotherevents.Moreover,inresponsetostrategicbreakthroughs,matureindustriesmayregaintheirrapidgrowthandtherebygothroughmorethanonetransitiontomaturity.1/28/20242JiaLiangdingImportantchanges：⑴Slowinggrowthmeansmorecompetitionformarketshare.⑵Firmsintheindustryincreasinglyaresellingtoexperienced,repeatedbuyers.⑶Competitionoftenshiftstowardgreateremphasisoncostandservice.⑷Thereisatopping-outprobleminaddingindustrycapacityandpersonnel.⑸Manufacturing,marketing,distributing,selling,andresearchmethodsareoftenundergoingchange.1/28/20243JiaLiangding⑹Newproductsandapplicationsarehardertocomeby.⑺Internationalcompetitionincreases.⑻Industryprofitsoftenfallduringthetransitionperiod,sometimestemporarilyandsometimespermanently.⑼Dealers’marginsfall,buttheirpowerincreases.1/28/20244JiaLiangding1.2.SomeStrategicImplicationsofIndustryTransition⑴OverallCostLeadershipVersusDifferentiateVersusFocus—theStrategicDilemmaMadeAcutebyMaturity.Rapidgrowthtendstomaskstrategicerrorsandallowthatstrategicexperimentationbehighandawidevarietyofstrategiesbeabletocoexist.Strategicsloppinessisgenerallyexposedbyindustrymaturity,however,maturitymayforcecompaniestoconfront,oftenforthefirsttime,theneedtochooseamongthethreegenericstrategies.Itbecomesamatterofsurvival.1/28/20245JiaLiangding⑵SophisticatedCostAnalysisCostanalysisbecomesincreasinglyimportantinmaturitytorationalizetheproductmixandpricecorrectly.Summary:anenhancedlevelof“financialconsciousness〞alongavarietyofdimensionsisoftennecessaryinmaturity,whereasinthedevelopmentalperiodoftheindustryareassuchasnewproductsandresearchmayhaverightlyheldcenterstage.1/28/20246JiaLiangding⑶ProcessInnovationandDesignforManufactureTherelativeimportanceofprocessinnovationsusuallyincreasesinmaturity,asdoesthepayofffordesigningtheproductanditsdeliverysystemtofacilitatelower-costmanufacturingandcontrol.⑷IncreasingScopeofPurchases⑸BuyCheapAssets1/28/20247JiaLiangding⑹BuyerSelectionpurchasingneedsversuscompanycapacities;growthpotential;structuralposition:intrinsicbargainingpower;propensitytoexercisethisbargainingpowerindemandinglowprices;costofservicing.⑺DifferentCostCurves⑻CompetingInternationally⑼ShouldTransitionBeAttemptedAtAll?1/28/20248JiaLiangding1.3StrategicPitfallsDuringtheTransitiontoMaturity⑴Acompany’sself-perceptionsanditsperceptionoftheindustry.Theself-perceptions,suchas“wearethequalityleader〞,“weprovidesuperiorcustomerservice〞,maybeincreasinglyinaccurateastransitionproceeds,buyers’prioritiesadjust,competitorsrespondtonewindustryconditions.Similarly,firms’assumptionsabouttheindustry,competitors,buyers,andsuppliersmaybeinvalidatedbytransition.1/28/20249JiaLiangding⑵Caughtinthemiddle.Transitionoftensqueezesouttheslackthathasmadethisstrategyviableinthepast.⑶Thecashtrap—investmentstobuildshareinamaturemarket.Arelatedpitfallisplacingheavyattentiononrevenuesinthematuringmarketinsteadofonprofitability.1/28/202410JiaLiangding⑷Givingupmarketsharetooeasilyinfavorofshort-runprofits.Inthefaceoftheprofitpressuresintransition,thereseemstobeatendencyforsomecompaniestotrytomaintaintheprofitabilityoftherecentpast—whichisdoneattheexpenseofmarketshareorbyforegoingmarketing,R&D,andotherneededinvestments,whichinturnhurtsfuturemarketposition.Aperiodoflowerprofitsmaybeinevitablewhileindustryrationalizationoccurs,andacoolheadisnecessarytoavoidoverreaction.1/28/202411JiaLiangding⑸Resentmentandirrationalreactiontopricecompetition(“wearenotcompeteonprice〞).Itisoftendifficultforfirmstoaccepttheneedforpricecompetitionafteraperiodinwhichithasnotbeennecessary,thenavoidingitmayhavebeenasacredrule.Somemanagersevenviewitasunseemlyorbeneaththeirdignity.Thiscanbeadangerousreactiontotransition.1/28/202412JiaLiangding⑹Resentmentandirrationalreactiontochangesinindustrypractices(“theyarehurtingtheindustry〞).Theresistancecanputafirmseriouslybehindinadaptingtonewcompetitiveenvironment.1/28/202413JiaLiangding⑺Overemphasison“creative〞,“new〞productsratherthanimprovingandaggressivelysellingexistingones.Theonsetofmaturityoftenmeansthatnewproductsandapplicationsarehardertocomeby.Itisusuallyappropriatethatthefocusofinnovativeactivityshouldchange,puttingstandardizationratherthannewnessandfinetuningatapremium.1/28/202414JiaLiangding⑻Clingingto“highquality〞asanexcusefornotmeetingaggressivepricingandmarketingmovesofcompetitors.Highqualitycanbeacrucialcompanystrength,butqualitydifferentialshaveatendencytoerodeasanindustrymatures.⑼Overhangingexcesscapacity.1/28/202415JiaLiangding1.4OrganizationalImplicationsofIndustryMaturityMoreattentiontocosts,customerservice,andtruemarketing(asopposedtoselling)mayberequired.Reducedattentiontointroducingnewproductsversusrefiningoldonesmaybenecessary.Less“creativity〞andmoreattentiontodetailandpragmatismisoftenwhatisneededinthematurebusiness.Theseshiftsincompetitivefocusobviouslyrequirechangesinorganizationalstructureandsystemstosupportthem,particularlyintheareaofcontrolandmotivationalsystems.1/28/202416JiaLiangding①Tighterbudgeting,strictercontrol,andnewperformance-basedincentivesystemsmaywellberequiredinthematurebusiness,allmoreformalthanthoseusedpreviously;②Controloffinancialassetssuchasinventoryandaccountsreceivablemaytakeongreaterimportance;③Morecoordinationacrossfunctionsandamongmanufacturingfacilitiesmustoftenoccurforthecompanytobecostcompetitive;1/28/202417JiaLiangding④Afirmmustbepreparedtoreeducateandremotivatepersonnelatalllevels,inordertoreduceresistancetopricecompetition,tonewreportingrequirements,tonewcontrols,toneworganizationalrelationships,toalossinpersonnelautonomy,etc.1/28/202418JiaLiangding⑤Generalmanagementmustbeawareofsubtlechangesinthemotivationalclimateintheorganization.Inthegrowthperiod,therearemanyopportunitiesforadvancement,greatintrinsicjobsatisfaction,butinthematurecompetitiveenvironment,thereislessgrowth,lessglamour,lessexcitement,andthespiritofpioneeringanduniquenesstendstofade.1/28/202419JiaLiangdingGeneralmanagementmustfacewith:⑴Scaled-downexpectationsforfinancialperformance.Thestandardsforacceptablegrowthandprofitsmustoftenbereducedinmanagers’minds.Ifmanagerstrytomeettheoldstandards,theymaytakeactionsthatareextremelydysfunctionalforthelong-runhealthofthefirmunlessithasanextremelystrongmarketposition.⑵Moredisciplinefromtheorganization.1/28/202420JiaLiangding⑶Scaled-downexpectationsforadvancement.Pastratesofpersonaladvancementareunlikelytobepossibleinthemorematureenvironment.Manymanagersmaylea