Porter1 distinguishes between the following three broad stages in the evolution of an industry/ market:
Each of these stages has its own particular characteristics, some of the more important of which are shown for each stage.Emerging industry:
demographic and other macro-environmental forces and factors affecting markets.
Porter then uses the characteristics of each stage to suggest the following strategies as being appropriate to each:Emerging industry:
Strategies developed to take account of industry competitive structure characteristics i.e.:
Transition to maturity:Strategies focused on:
Clearly this approach is similar to the conventional concept of product life cycle analysis in identifying the stage, specifying the characteristics of each stage, and suggesting appropriate strategies for the stages. Porter has developed the notion of industry life cycle further by linking it to the ‘strategic position’ of the individual organization. Strategic position is categorized in terms of whether the individual organization is a leader or a follower.
Genetic engineering and biotechnology are examples of what Porter would classify as ‘emerging’ industries. At the moment in these industries there is substantial jockeying for position amongst the incumbents. Some organizations, however, are already emerging as leaders. For example, in genetic engineering, particularly in the area of food production, Monsanto is probably ahead of the field. A good example of an industry in Porter’s stage of ‘transition to maturity’ is the market for cars in the West, which has seen companies such as Mercedes and Volkswagen paying more attention to developing new market segments.
It is not difficult to find examples of industries in Porter’s ‘decline’ stage. The textile industry in the UK is probably a good example of this. Coates Viyella, a once major employer in the UK textile industry has recently pursued strategies of divestment while at the same time seeking pockets of enduring demand – just as Porter suggests.
Marketing Management Related Tutorials
|Consumer Behaviour Tutorial||Marketing Strategy Tutorial|
|Marketing Research Tutorial||Principles of service marketing management Tutorial|
|Advertising Management Tutorial|
Marketing Management Related Interview Questions
|Consumer Behaviour Interview Questions||Marketing Strategy Interview Questions|
|Marketing Concepts Interview Questions||Marketing Research Interview Questions|
|Principles of service marketing management Interview Questions||Advertising Management Interview Questions|
|Brand Management Interview Questions||Marketing Interview Questions|
Marketing Management Related Practice Tests
|Consumer Behaviour Practice Tests||Marketing Strategy Practice Tests|
|Marketing Concepts Practice Tests||Marketing Research Practice Tests|
|Principles of service marketing management Practice Tests||Advertising Management Practice Tests|
|Brand Management Practice Tests|
Marketing Management Tutorial
Development Of A Strategic Approach To Marketing: Its Culture; Internal Macro- And External Micro-environmental Issues
Markets And Customers: Consumer And Organizational Buyer Behaviour And Marketing Strategy
Markets And Customers: Market Boundaries; Target Marketing
Product And Innovation Strategies
Channels Of Distribution And Logistics
Customer Care And Relationship Marketing
Marketing Information Systems And Research
Analysing The Environment: (opportunities And Threats) And Appraising Resources (strengths And Weaknesses)
Evaluating And Controlling Strategic Marketing
Strategic Marketing Planning Tools
Services Marketing And Not-for-profit Marketing
All rights reserved © 2018 Wisdom IT Services India Pvt. Ltd
Wisdomjobs.com is one of the best job search sites in India.