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How Industries Evolve: Principles for Achieving and Sustaining Superior Performance Hardcover – November 14, 2004
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These are the key insights from the book,
1. 4 types of industry evolution patterns - Progressive (retail), Creative (pharma), Radical (fedex) and Intermediating (financial brokers).
2. These rules can be applied across core assets or core activities.
3. Two categories of phases of changes - [Fragementation, shakeout, maturity, declining]or [Emergence, Convergenc, Co-Existence and Dominance]
4. Her prescriptive approach to apply it to the industry,
- Identify what is your industry
- Determine Evolutionary Trajectory
- Determine nature of change - architectural/foundational
- Determine phase of change
- Apply principles of competition for each type
5. 2 kinds of tradeoffs - Leading vs. Following, Repositioning vs. Sustaining.
As you can well see these perspectives are not driven from lot of data and hard stats but more conjectures and hypothesis that are not well proven. I am not sure using this approach will help you make $ of money of these trends but it can get you tenureship at the local university.
I have deducted one star because the book could have done with more actual data. The author states that it is based on ten years of research and I believe her, but unfortunately that does not really come across reading the book. Sadly, the author has not published (much/any?) of the research, which makes it impossible to understand the methodology. The author is accomplished so my guess is that she got kind of bored with the research and decided not to publish it. The book would have been much stronger had it contained more actual data.
Most Recent Customer Reviews
One of the first steps I take in analyzing a company is to timeline its' industry. McGahan offers up a detailed model of the various stages and life cycles of industries. Read morePublished on April 3, 2006 by Michael Davis
The best aspect of this book is that it offers a detailed model for the stages of radical and intermediating change. Read morePublished on September 26, 2005 by ccomerade
While the framework is nicely structured, I was not able to get a good picture of how to implement the idea. Read morePublished on September 21, 2005 by trader