How Industries Evolve - jyu.fi.pdf

Business Strategy Review, 2000, Volume 11 Issue 3, pp 1-16 How Industries Evolve Anita M. McGahan capital. Either fundamental operating performance Firms can improve their performance by must improve, or shareholder value will not rise at tailoring investments to ride industry historic rates. trends rather than to fight them. This There is no shortage of theories on how to relieve the article sheds light on how. It argues that pressure. Many of them involve technology. Some better corporate performance hinges on optimists believe that the blanket introduction of new understanding how industries evolve and technology across the whole economy will somehow that the main frameworks currently in use result in new value, almost by osmosis. Others look for more specific links between strategy, investment (the five forces and the S-curve/product and increased profitability. Building on the five-forces life cycle models) are incomplete for this framework (Porter 1980) and on the S-curve purpose. Building on an extensive body framework (Abernathy and Utterback 1978, Foster 1986), the fundamental premise of this article is that of fieldwork and statistical research, the you cannot increase profitability without a thorough author identifies four basic models of understanding of the structural changes shaping the industry evolution which she calls industry concerned. “receptive”, “blockbus