CompetitiveStrategyinEmergingIndustries(英文版).pptx

第十六讲第十六讲 Competitive Strategy in Emerging Industries1.1 The Structural Environment in Emerging Industries1.2 Problems Constraining Industry Development1.3 To Adopt New Products Early or Late?1.4 Strategic Choices in Emerging Industries4/10/20231Jia Liangding1.1 新兴产业的结构新兴产业的结构Emerging Industries are newly formed or reformed industries that have been created by technological innovations,shifts in relative cost relationships,emergence of new consumer needs,or other economic and sociological changes that elevate a new product or service to the level of a potentially viable business opportunity.Emerging Industries are been created all the time.4/10/20232Jia LiangdingThe essential characteristic of an Emerging Industry from the viewpoint of formulating strategy is that there are no rules of the game.The competitive problem in an Emerging Industry is that all the rules must be established such that the firm can cope with and prosper under them.The absence of rules is both a risk and a source of opportunity.4/10/20233Jia LiangdingCOMMON STRUCTURAL CHARACTERISTICS:Technological Uncertainty.What product configuration will ultimately prove to be the best?What production technology will to be the most efficient?Strategic Uncertainty.A wide variety of strategic approaches often are tried by industry participants.No“right”strategy has been clearly identified.Firms often have poor information about competitors,characteristics of customers,and industry conditions.4/10/20234Jia LiangdingHigh Initial Costs but Steep Cost Reduction.Small production volume;Increasing scales;Steep learning curves;Declining costs.Embryonic Companies(newly formed companies)and Spin-offs.Without established rules of the game or scale economies as deterrents,newly formed companies are in position to get into Emerging Industries.First-Time Buyers.The buyer must be informed about the basic nature and functions of the new product or service,be convinced that it can actually perform these functions,and be persuaded that the risks of purchasing it are rationally borne given the potential benefits.4/10/20235Jia LiangdingShort Time Horizon.Subsidy.4/10/20236Jia LiangdingEARLY MOBILITY BARRIERS Proprietary Technology;Access to distribution channel;Access to raw material and other inputs of appropriate cost and quality;Cost advantages due to experience,made more significant by the technological and competitive uncertainties;Risk,which raises the effective opportunity cost of capital and thereby effective capital barriers;4/10/20237Jia Liangding1.2 Problems Constraining Industry DevelopmentInability to Obtain Raw Materials and Components severe shortagesPeriod of Rapid Escalation of Raw Materials Prices burgeoning demand and inadequate supplyAbsence of Infrastructuredistribution channels,service facilities,trained mechanics,complementary products,etc.Perceived likelihood of obsolescencesecond-or third-generation4/10/20238Jia LiangdingCustomers Confusionresulting from the presence of a multiplicity of product approaches,technological variations,conflicting claims and counterclaims by competitors).Erratic product quality.Image and Credibility with the Financial CommunitypoorRegulatory Approval.High Costs.cost-volume cycleResponse of Threatened Entities.4/10/20239Jia Liangding1.3 To Adopt New Products Early or Late?One of the crucial questions for strategic purposes in an emerging industry is often the assessment of which markets for the new industrys product will open early and which will come late.4/10/202310Jia LiangdingNature of the Benefit.Perhaps the single most important determinant of the receptivity of the buyer to a new product or service is the nature of the expected benefit.We can imagine a continuum of benefits ranging from a new product that offers a performance advantage unachievable through other means to one that offers solely a cost advantage.Between the two,we can get many cases mixing performance advantage with cost one.The receptivity of the buyer depends on a number of other aspects of the nature of the benefits it offers:4/10/202311Jia Liangdingperformance advantageHow large is the performance advantage for the particular buyers?How obvious is the advantage?How pressing is the need for the buyer to improve along the dimension offered by the new product?Does the performance advantage improve the competitive position of the buyer?How strong is competitive pressure to compel changeover?How price and/or cost sensitive is the buyer,if the added performance entails higher cost?4/10/202312Jia Liangdingcost advantageHow large is the cost advantage for the particular buyers?How obvious is the advantage?Can a lasting competitive advantage be gained from lowering costs?How much competitive pressure compels changeover?How cost-oriented is the prospective buyers business strategy?4/10/202313Jia LiangdingState of the Art Required to Yield Significant Benefits.A second key factor is the technological performance about their application demands of the product.Cost of Product Failure.Introduction or Switching Costs.Support Service.Cost of Obsolescence.Some buyers can obtain all the benefits they really need from the first generation,whereas others will be forced to acquire successive generations of the new product to remain competitive.Depending on their changeover costs,the latter buyers may be more or less to buy early.4/10/202314Jia LiangdingAsymmetric Government,Regulatory,or Labor Barriers.Resources to Change.Perception of Technological Change.Personal Risk to the Decision Maker.4/10/202315Jia Liangding1.4 Strategic Choices in Emerging IndustriesFormulation of strategy in emerging industries must cope with the uncertainty and risk of this period of an industrys development.The rules of the competitive game are largely undefined,the structure of the industry unsettled and probably changing,and competitors hard to diagnose.Shaping Industry Structure(the overriding strategic issue).Externalities in Industry Development.Changing Role of Suppliers and Channels.Shifting Mobility Barriers.4/10/202316Jia LiangdingSTRATEGIC CHOICES OF TIMIMG ENTRY Early entry is appropriate in the following circumstances:image and reputation of the firm are important to the buyer;the learning curve is important,experience is difficult to imitate,and it will be not nullified by successive technological generations;customer loyalty will be great;absolute cost advantage can be gained by early commitment to suppliers of raw materials,distribution channels,and so on.4/10/202317Jia LiangdingEarly entry is risky in the following circumstances:Early competition and market segmentation are on a basis different to that which will be important later in industry development.The firm,therefore,builds the wrong skills and may face high costs of changeover;Costs of opening up the market are great,including such things as customer education,regulatory approvals,and technological pioneering,and the benefits of opening up the market cannot be made proprietary to the firm.Early competition with small,newly started firms will be costly,but these firms will be replaced by more formidable competition later.Technological change will make early investments obsolete and allow firms entering later to have an advantage by having the newest products and processes.4/10/202318Jia LiangdingTactical Moves.Some of these may improve the firms strategic position:early commitments to suppliers of raw materials;appropriate financing choice.4/10/202319Jia Liangding