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Industy evolution according to Porter

CJBS Digital Learning

Created on November 7, 2024

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  • Focus or divest
Strategies
  • Substitution by newer technologies​
  • Demographic/social change
Issues

Stage 4 - Decline

  • Shift from focus on distribution to branding, customer retention and loyalty​
  • Segmentation​
  • Efficiency focus
Strategies
  • Slow growth, some failing products​
  • ‘Overshot’ excess capacity, intense competition​
  • Increased customer power​
  • Extended product line
Issues

Stage 3 - Transition to maturity

  • Locate customers who are innovators and early adopters​
  • Establish standards​
  • Reduce switching cost risk​
  • Encourage trial
Strategies
  • Technological uncertainty​
  • Commercial uncertainty​
  • Customer uncertainty​
  • Channel uncertainty
Issues

Stage 1 - Emergence

  • Focus on distribution– new channels, new partners, additional segments​
  • Prioritise efficient growth ahead of customer service
Strategies
  • Difficult scaling decisions​
  • Seek leadership, or defensible niche?
Issues

Stage 2 - Growth