Strategic Management
4th Edition
ISBN: 9781259927621
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
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Question
Chapter 7, Problem 2DQ
Summary Introduction
To determine: The industry life cycle that would affect the business strategy for the firm.
Introduction:
Strategic management refers to formulating and implementing the way to achieve the goals by considering available resource and the internal and external environment. It will be framed by the top management on behalf of an organization.
Expert Solution & Answer
Explanation of Solution
Determine the industry life cycle that would affect the business strategy for the firm:
The industry life cycle stages are introduction, growth, maturity, and decline. In the introduction phase, the firm would frame the objective to seed the future growth of the company. Here, the firm would start spending more on research and development and in marketing. The unique feature of the products and performance would be decided.
In the growth phase, the firm would create a strategy and take necessary actions to be in a strong strategic position. The process innovation would be emphasized using research and development to move towards manufacturing and marketing capabilities.
In the maturity phase, the firm will try their best to maintain the strong strategic position. There will be intense price competitions in the phase.
In the decline phase, the firm can claim their market share through integration, differentiation, or cost-leadership strategy. Exit, harvest, maintain, or consolidate are the options that are available in the decline phase. The firm should consider choosing one option.
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Students have asked these similar questions
Select an industry and consider how the life cycle of the industry has affected the company's business strategy in that industry over time. In your answer, address each phase: introduction, growth, shakeout, maturity, and decline.
Choose an industry and a firm within that industry (which can be real or imaginary, but should not be one of the examples from the industry life cycle stages discussion in the PPTs). Using our explanation of what happens in each of the industry life cycle stages, describe one specific thing the firm would need to do to avoid going out of business during the “shakeout” stage and one thing the firm should do after that stage but not before it.
The selected Industry here is the retail industry. (ALDI)
Conduct research to find articles or academic sources that explain the competitive forces driving your selected industry. List and explain at least 3 competitive forces, including global forces if applicable.
Additionally, select a specific corporation (ALDI) within your chosen industry and explain whether the competitive forces you identified for the industry apply specifically to your chosen corporation.
Be sure to post at least 2 references in support of your explanations and conclusions.
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