Industry trajectories of change

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Industry trajectories of change

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Title: Industry trajectories of change
Industry Analysis of the Digital Video Player industry
Author: Tranæs, Henrik Cort
Abstract: This thesis draws upon theory from strategy management theory. More specifically it draws upon strategic position and dynamics theory. It applies a strategy oriented perspective to define current and new industries and narrow in their boundaries. The thesis theoretical foundation is build upon industry dynamics theory combined with theories on sustaining competitive advantage in network economies. The thesis constructs an managerial model based upon the above mentioned theories. The model can be used to measure and evaluate an industry’s evolutionary trajectory and to align the industry’s assets and activities to the phases of industry convergence by creating new value in form of partnerships, standards and complementors. The managerial model is then used for an real industry analysis on the incumbent physical disc based digital video player industry and the emerging industry of digital media players to understand if the model can be of use in a real world setting. The analysis based on the model concludes that the firms in the incumbent industry are facing threats to their core assets and core activities from IT hardware firms. These companies that are emerging are offering digital media players that are based upon non physical discs which in some aspects offer better performance than the incumbent industry’s products. The incumbent are under threat of being substituted by the new products that cater to the same demand, but the products are coming from other the emerging industry with uses different buyers, suppliers and complementors. Thus, the companies are seeing that their industry current assets and activities are being threatened by the other industry’s emergence. This changes their industry evolution to be on a radical trajectory where the stage of evolution in it’s convergence phase. The analysis concludes that it is most urgent that firms in the incumbent industries validate their current industry evolution and use the findings from the analysis to align their assets and activities and creating the necessary partnerships and complements with other firms in order to stay competitive in the future.
URI: http://hdl.handle.net/10417/813
Date: 2010-01-08
Pages: 90 s.
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