Industry Life Cycle

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Table of Contents A. Part A: Industry Life Cycle Framework - Critique 3 1.0 Introduction 3 2.0 Industry Life Cycle Framework 4 2.1 Introduction Phase 4 2.2 Growth Phase 4 2.3 Mature Phase 6 2.4 Decline Phase 7 3.0 Conclusion and My Views – Part A 7 B. Part B: Industry Level Analysis 8 4.0 Introduction 8 5.0 Resource-Based View (RBV) of the American and Japanese Automobile Industry 9 5.1 Mass Production Capabilities - Economies of Scale 9 5.2 Lean Production Capabilities 11 6.0 Conclusion - RBV 13 7.0 SWOT Analysis of General Motors *GM) and Toyota 14 7.1 Strength 14 7.2 Weaknesses 15 7.3 Opportunities 15 7.4 Threats 16 8.0 Conclusion – SWOT 17 9.0 Conclusion and My Views – Part B 17 References 19 * A.…show more content…
Before 1981, all firms use their own platform and not a single firm at that time controlled the interface standards, the hardware architecture and also the operating system. Most firms started using the IBM “compatible” PC which creates product standardization. This again contributes to economies of scale and the drop in cost and price. There are few contributors to the increase in sales and the further drop in prices in the PC industry, by the introduction of the following technological advancement: * 1985: Intel 32-bit 386 processor which allowed the graphical user interfaces (GUI) which is more user friendly * 1990: Windows 3.0 that standardizes the PC on the Windows Operating system * 1990’s: The rise of the World Wide Web (WWW) 3.3 Mature Phase The mature phase begins when there is an increase in market saturation. When saturation is reached, demand is centered on direct and indirect replacement. Large firms will compete on prices which create further barriers to entry for smaller firms. At this stage, the larger firm’s strategies will include advertising, process innovation and also price competition. All this will be barriers to the smaller firms which has smaller funds. Figure 2 illustrates the number of firms for both the PC and Auto industry during their first 27 years of development. Both industries went from introduction phase to almost
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