Chapter 11: S Curve, Strategic Managment After Midterm

What is typically the Y-axis in an S-Curve depiction?

Volume

The core goal of the strategist in the introductory stage is to...

focus on facilitating wide-spread adoption, i.e. crossing the chasm from early adapters to main stream adapters

Purpose of S Curve

to understand and interpret the evolution of a market, product, or technology so as to make informed strategic decisions about where value may be created now and in the future

Which of the following is an example of a firm that successfully jumped to a new S-Curve?

Kelley school of business offering an online MBA program

Growth:

Sales explode as mainstream customers become familiar with the product or service and buy it, and prices fall as firms manage to attain experience and economies of scale and distribution channels are established

5 Stages in S curve

1. Introduction 2. Growth 3. Shakekout 4. Maturity 5. Decline

Introduction

A new product or service is introduced in the market and innovators and early adopting customers who are initially unfamiliar with the product make initial purchases;

The fuel savings which will enable regional commuting will increasingly act as a substitute to which industry?

Car, train, and ferry

Can you match the example with the industry lifecycle stage? The DVD Movie Rental Industry

Decline

Maturity:

Demand mainly takes the form of replacement purchases, growth slows to a halt, and those having survived the shakeout compete for marketshare, often leading to a price war

Battery Electric Vehicles in the Automotive Industry can be best positioned as where in an S-Curve? This stage is categorized as: "sales explode as mainstream customers become familiar with the product or service and buy it, and prices fall as firms manage to attain experience and economies of scale and distribution channels are established."

Growth

In the _____________ phase, the strategy may focus on capturing new customers and striving to ensure that the focal firm's products, technologies, or ways of operating become the standard for the industry.

Growth

Decline:

Growth becomes negative as the market is completely saturated; the threat of substitution is real and can set of new product lifecycles for superior novel products or services, excess capacity leads to inventory being sold at discounted prices, firms come up with exit strategies and end game strategies.

Can you match the example with the industry lifecycle stage? Autonomous Driving Car Industry is beginning to be trialed by some of the major car manufacturers.

Introduction

The Battery Plane Industry is still clearly in the ______ stage i.e. "a new product or service is introduced in the market and innovators and early-adopting customers who are initially unfamiliar with the product make initial purchases."

Introduction

Urban Air Mobility is largely in which stage of the industry lifecycle?

Introduction

Underlying theoru

Logistic functions, which tend to look like a flattened "S" shape, have been found in a large number of different fields and domains of research. One area to which the notion of S-curves is particularly salient in the context of strategy, is the study of technological change.

Lithium ion batteries and electric propulsion technologies are creating new S-Curves in industries such as bus, automobile and truck manufacturing. Before the advent of these technologies, these industries were seen to be in the _______ stage for the last 50 or so years.

Mature

Can you match the example with the industry lifecycle stage? The Furniture Industry has been in this stage for a century or more

Maturity

Can you match the example with the industry lifecycle stage? The Rideshare Industry has seen consolidation and a few firms emerge

Shakeout

Value created

The S-curve perspective makes managers and practitioners aware of the dynamism affecting their businesses

Why is it called an S-Curve?

The general trajectory of industry evolution appears like an 'S'

Shakeout:

The initial success of the product or service attracted competitors, yet growth starts to taper off as demand reaches saturation levels. Firms focus on differentiation or cost leadership relative to competitors rather than push the category as a whole; rivalry intensifies with a number of losing firms backing out;

What is typically the X-axis in an S-Curve depiction?

Time

What is the purpose of an S-Curve Analysis?

To understand and interpret the evolution of a market, product, or technology

A policy mandate from the Government regarding carbon taxes would ________ the S-Curve for the electric plane industry.

accelerate

The core contention of an S-Curve Model is that historically many markets, products, and technologies have followed a similar trajectory (which takes the form of a S shape). The _________ Industry seems to be several years ahead of the electric plane industry and so strategists could learn much from studying the evolution and milestone of this context.

battery electric vehicle

Clearly, Honeywell is well aware of the emergence of a new S-Curve and is positioning itself to reap the benefits associated with this increase in demand. The emergence of Urban Air Mobility could cause the traditional automobile industry to enter into the ______ stage.

decline