The Concept of Industry Life Cycle and Development of Business Strategies
The situation in which firms are struggling with decreasing demand for their goods and services gives an incentive to explore strategic fractures that have caused it. It is therefore of great importance to search for the system of cause and effect that shapes and defines organizational adaptability and creativity of the firm and/or its parts, which in turn creates value both for the firm and its environment. The appropriate use of specific business strategies highly depends on the phase of the life cycle of the industry in which the firm and/or its parts operate. The purpose of the paper is to understand the significance of the concept of industry life cycle and explore the implications on the process of designing business strategies. The authors familiarise the readers with the most important research that has contributed to the development of business strategies fitted to each phase of the life cycle of an industry. The paper concludes with the notion that business strategies of firms vary depending on the corresponding stage of the industry life cycle, where each phase inherently requires a different, innovative business strategy. Therefore, the main precondition of sustainable development of a strategic business unit and/or firm is the willingness and capability of management to accept new knowledge about the interdependence between business goals and interdisciplinary knowledge required to achieve them.
|This chapter was published in: Andrija Sabol & Matej Šander & Durdica Fuckan , , pages 635-642, 2013.|
|This item is provided by ToKnowPress in its series Active Citizenship by Knowledge Management & Innovation: Proceedings of the Management, Knowledge and Learning International Conference 2013 with number 635-642.|
|Contact details of provider:|| Web page: http://www.toknowpress.net/proceedings/978-961-6914-02-4/|
When requesting a correction, please mention this item's handle: RePEc:tkp:mklp13:635-642. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alen Jezovnik)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.