第17讲竞争战略在向行业的成熟转型(英文)

第十七讲CompetitiveStrategyDuringtheTransitiontoIndustryMaturity1.1IndustryChangesDuringtheTransitiontoMaturity1.2SomeStrategicImplicationsofIndustryTransition1.3StrategicPitfallsDuringtheTransitiontoMaturity1.4OrganizationalImplicationsofIndustryMaturity9/26/20231JiaLiangding1.1IndustryChangesDuringtheTransitiontoMaturityAspartoftheirevolutionaryprocess,manyindustriespassfromperiodsofrapidgrowthtothemoremodestgrowthofwhatiscommonlycalledindustrymaturity.Industrymaturitydoesnotoccuratanyfixedpointinanindustrydevelopment,anditcanbedelayedbyinnovationsorotherevents.Moreover,inresponsetostrategicbreakthroughs,matureindustriesmayregaintheirrapidgrowthandtherebygothroughmorethanonetransitiontomaturity.9/26/20232JiaLiangdingImportantchanges：⑴Slowinggrowthmeansmorecompetitionformarketshare.⑵Firmsintheindustryincreasinglyaresellingtoexperienced,repeatedbuyers.⑶Competitionoftenshiftstowardgreateremphasisoncostandservice.⑷Thereisatopping-outprobleminaddingindustrycapacityandpersonnel.⑸Manufacturing,marketing,distributing,selling,andresearchmethodsareoftenundergoingchange.9/26/20233JiaLiangding⑹Newproductsandapplicationsarehardertocomeby.⑺Internationalcompetitionincreases.⑻Industryprofitsoftenfallduringthetransitionperiod,sometimestemporarilyandsometimespermanently.⑼Dealers’marginsfall,buttheirpowerincreases.9/26/20234JiaLiangding1.2.SomeStrategicImplicationsofIndustryTransition⑴OverallCostLeadershipVersusDifferentiateVersusFocus—theStrategicDilemmaMadeAcutebyMaturity.Rapidgrowthtendstomaskstrategicerrorsandallowthatstrategicexperimentationbehighandawidevarietyofstrategiesbeabletocoexist.Strategicsloppinessisgenerallyexposedbyindustrymaturity,however,maturitymayforcecompaniestoconfront,oftenforthefirsttime,theneedtochooseamongthethreegenericstrategies.Itbecomesamatterofsurvival.9/26/20235JiaLiangding⑵SophisticatedCostAnalysisCostanalysisbecomesincreasinglyimportantinmaturitytorationalizetheproductmixandpricecorrectly.Summary:anenhancedlevelof“financialconsciousness”alongavarietyofdimensionsisoftennecessaryinmaturity,whereasinthedevelopmentalperiodoftheindustryareassuchasnewproductsandresearchmayhaverightlyheldcenterstage.9/26/20236JiaLiangding⑶ProcessInnovationandDesignforManufactureTherelativeimportanceofprocessinnovationsusuallyincreasesinmaturity,asdoesthepayofffordesigningtheproductanditsdeliverysystemtofacilitatelower-costmanufacturingandcontrol.⑷IncreasingScopeofPurchases⑸BuyCheapAssets9/26/20237JiaLiangding⑹BuyerSelectionpurchasingneedsversuscompanycapacities;growthpotential;structuralposition:intrinsicbargainingpower;propensitytoexercisethisbargainingpowerindemandinglowprices;costofservicing.⑺DifferentCostCurves⑻CompetingInternationally⑼ShouldTransitionBeAttemptedAtAll?9/26/20238JiaLiangding1.3StrategicPitfallsDuringtheTransitiontoMaturity⑴Acompany’sself-perceptionsanditsperceptionoftheindustry.Theself-perceptions,suchas“wearethequalityleader”,“weprovidesuperiorcustomerservice”,maybeincreasinglyinaccurateastransitionproceeds,buyers’prioritiesadjust,competitorsrespondtonewindustryconditions.Similarly,firms’assumptionsabouttheindustry,competitors,buyers,andsuppliersmaybeinvalidatedbytransition.9/26/20239JiaLiangding⑵Caughtinthemiddle.Transitionoftensqueezesouttheslackthathasmadethisstrategyviableinthepast.⑶Thecashtrap—investmentstobuildshareinamaturemarket.Arelatedpitfallisplacingheavyattentiononrevenuesinthematuringmarketinsteadofonprofitability.9/26/202310JiaLiangding⑷Givingupmarketsharetooeasilyinfavorofshort-runprofits.Inthefaceoftheprofitpressuresintransition,thereseemstobeatendencyforsomecompaniestotrytomaintaintheprofitabilityoftherecentpast—whichisdoneattheexpenseofmarketshareorbyforegoingmarketing,R&D,andotherneededinvestments,whichinturnhurtsfuturemarketposition.Aperiodoflowerprofitsmaybeinevitablewhileindustryrationalizationoccurs,andacoolheadisnecessarytoavoidoverreaction.9/26/202311JiaLiangding⑸Resentmentandirrationalreactiontopricecompetition(“wearenotcompeteonprice”).Itisoftendifficultforfirmstoaccepttheneedforpricecompetitionafteraperiodinwhichithasnotbeennecessary,thenavoidingitmayhavebeenasacredrule.Somemanagersevenviewitasunseemlyorbeneaththeirdignity.Thiscanbeadangerousreactiontotransition.9/26/202312JiaLiangding⑹Resentmentandirrationalreactiontochangesinindustrypractices(“theyarehurtingtheindustry”).Theresistancecanputafirmseriouslybehindinadaptingtonewcompetitiveenvironment.9/26/202313JiaLiangding⑺Overemphasison“creative”,“new”productsratherthanimprovingandaggressivelysellingexistingones.Theonsetofmaturityoftenmeansthatnewproductsandapplicationsarehardertocomeby.Itisusuallyappropriatethatthefocusofinnovativeactivityshouldchange,puttingstandardizationratherthannewnessandfinetuningatapremium.9/26/202314JiaLiangding⑻Clingingto“highquality”asanexcusefornotmeetingaggressivepricingandmarketingmovesofcompetitors.Highqualitycanbeacrucialcompanystrength,butqualitydifferentialshaveatendencytoerodeasanindustrymatures.⑼Overhangingexcesscapacity.9/26/202315JiaLiangding1.4OrganizationalImplicationsofIndustryMaturityMoreattentiontocosts,customerservice,andtruemarketing(asopposedtoselling)mayberequired.Reducedattentiontointroducingnewproductsversusrefiningoldonesmaybenecessary.Less“creativity”andmoreattentiontodetailandpragmatismisoftenwhatisneededinthematurebusiness.Theseshiftsincompetitivefocusobviouslyrequirechangesinorganizationalstructureandsystemstosupportthem,particularlyintheareaofcontrolandmotivationalsystems.9/26/202316JiaLiangding①Tighterbudgeting,strictercontrol,andnewperformance-basedincentivesystemsmaywellberequiredinthematurebusiness,allmoreformalthanthoseusedpreviously;②Controloffinancialassetssuchasinventoryandaccountsreceivablemaytakeongreaterimportance;③Morecoordinationacrossfunctionsandamongmanufacturingfacilitiesmustoftenoccurforthecompanytobecostcompetitive;9/26/202317JiaLiangding④Afirmmustbepreparedtoreeducateandremotivatepersonnelatalllevels,inordertoreduceresistancetopricecompetition,tonewreportingrequirements,tonewcontrols,toneworganizationalrelationships,toalossinpersonnelautonomy,etc.9/26/202318JiaLiangding⑤Generalmanagementmustbeawareofsubtlechangesinthemotivationalclimateintheorganization.Inthegrowthperiod,therearemanyopportunitiesforadvancement,greatintrinsicjobsatisfaction,butinthematurecompetitiveenvironment,thereislessgrowth,lessglamour,lessexcitement,andthespiritofpioneeringanduniquenesstendstofade.9/26/202319JiaLiangdingGeneralmanagementmustfacewith:⑴Scaled-downexpectationsforfinancialperformance.Thestandardsforacceptablegrowthandprofitsmustoftenbereducedinmanagers’minds.Ifmanagerstrytomeettheoldstandards,theymaytakeactionsthatareextremelydysfunctionalforthelong-runhealthofthefirmunlessithasanextremelystrongmarketposition.⑵Moredisciplinefromtheorganization.9/26/202320JiaLiangding⑶Scaled-downexpectationsforadvancement.Pastratesofpersonaladvancementareunlikelytobepossibleinthemorematureenvironment.Manymanagersmaylea