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Presented by:-
Meenakshi Chhangani
MBA III Sem, JIET SOM
Definition
Industry:-
Economic activity
concerned with the
processing of raw
materials and
manufacture of goods
in factories.
Definition
Industry evolution :
Slow process of
change from
one form or level to a
better or higher one,
or that brings into
being a superior or
new order.
Fragmentation
• The process or state of breaking or being broken into fragments.
• Also known as Introduction stage.
Shakeout
• Emergence of new industry begins at this stage.
• Competitors realises the business opportunities.
Maturity
• Efficiencies render competitive advantage.
• Factors like price, competition & cooperation are being complex.
• Availability of substitutes make competition aggressive.
Decline
A stage during which a war of slow destruction between
businesses may develop and those with heavy bureaucracies
may fail
 Refers to the number, size and relative strength of
competitors.
 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
established firms.
The Driving Forces of Industry Evolution
Customers become
more knowledgeable
& experienced
Diffusion of
technology
Demand growth
slows as market
saturation approaches
Customers become
more price conscious
Products become
more standardized
Distribution channels
consolidate
Production shifts
to low-wage
countries
Price competition
intensifies
Bargaining power
of distributors
increases
BASIC CONDITIONS INDUSTRY STRUCTURE COMPETITION
Excess capacity
increases
Production
becomes less R&D
& skill-intensive
Quest for new
sources of
differentiation
 Drive change within
your organisation,
adapting it to a dynamic
environment and
controlling how it
evolves.
 The many economic,
competitive and global
factors that influence how
organizations conduct
business are constantly
and evolving.
Driving forces of environmental change:-
• Population
• Consumption
• Technology
Industry evolution and concentration
Industry evolution and concentration

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Industry evolution and concentration

  • 2. Definition Industry:- Economic activity concerned with the processing of raw materials and manufacture of goods in factories.
  • 3. Definition Industry evolution : Slow process of change from one form or level to a better or higher one, or that brings into being a superior or new order.
  • 4.
  • 5. Fragmentation • The process or state of breaking or being broken into fragments. • Also known as Introduction stage. Shakeout • Emergence of new industry begins at this stage. • Competitors realises the business opportunities. Maturity • Efficiencies render competitive advantage. • Factors like price, competition & cooperation are being complex. • Availability of substitutes make competition aggressive. Decline A stage during which a war of slow destruction between businesses may develop and those with heavy bureaucracies may fail
  • 6.  Refers to the number, size and relative strength of competitors.  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 established firms.
  • 7. The Driving Forces of Industry Evolution Customers become more knowledgeable & experienced Diffusion of technology Demand growth slows as market saturation approaches Customers become more price conscious Products become more standardized Distribution channels consolidate Production shifts to low-wage countries Price competition intensifies Bargaining power of distributors increases BASIC CONDITIONS INDUSTRY STRUCTURE COMPETITION Excess capacity increases Production becomes less R&D & skill-intensive Quest for new sources of differentiation
  • 8.  Drive change within your organisation, adapting it to a dynamic environment and controlling how it evolves.
  • 9.  The many economic, competitive and global factors that influence how organizations conduct business are constantly and evolving.
  • 10. Driving forces of environmental change:- • Population • Consumption • Technology