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MBA III Sem, JIET SOM
concerned with the
processing of raw
manufacture of goods
Industry evolution :
Slow process of
one form or level to a
better or higher one,
or that brings into
being a superior or
• The process or state of breaking or being broken into fragments.
• Also known as Introduction stage.
• Emergence of new industry begins at this stage.
• Competitors realises the business opportunities.
• Efficiencies render competitive advantage.
• Factors like price, competition & cooperation are being complex.
• Availability of substitutes make competition aggressive.
A stage during which a war of slow destruction between
businesses may develop and those with heavy bureaucracies
Refers to the number, size and relative strength of
It depends upon whether the dominant design is
standardized & accessible to new entrants.
Some economists have found that concentration leads
to higher prices
Industrial concentration also is promoted by barriers to
entry, which make it difficult for new firms to displace
The Driving Forces of Industry Evolution
slows as market
more price conscious
BASIC CONDITIONS INDUSTRY STRUCTURE COMPETITION
becomes less R&D
Quest for new
Drive change within
adapting it to a dynamic
controlling how it
The many economic,
competitive and global
factors that influence how
business are constantly
Driving forces of environmental change:-
Jan. 28, 2016
presentation on evolution of industry and phases it has gone through.