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Competitive Life Cycle

The document discusses the typical competitive life cycle pattern seen in disruptive industries. It begins with low sales and few competitors in the infancy stage. As the technology matures, sales expand and many new competitors enter the market. Eventually the market reaches maturity, sales levels off, and a shakeout of competitors leaves only a few dominant players. Margins typically start low and rise as the market expands, but the mature market stage can vary between industries. The document uses the example of portable MP3 players to illustrate these stages, from early niche players to the iPod's dominance to smartphones replacing the market entirely. Students are assigned to research and present these patterns through slides for any industry or product within the given parameters.

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Shahasane Madhura
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69 views6 pages

Competitive Life Cycle

The document discusses the typical competitive life cycle pattern seen in disruptive industries. It begins with low sales and few competitors in the infancy stage. As the technology matures, sales expand and many new competitors enter the market. Eventually the market reaches maturity, sales levels off, and a shakeout of competitors leaves only a few dominant players. Margins typically start low and rise as the market expands, but the mature market stage can vary between industries. The document uses the example of portable MP3 players to illustrate these stages, from early niche players to the iPod's dominance to smartphones replacing the market entirely. Students are assigned to research and present these patterns through slides for any industry or product within the given parameters.

Uploaded by

Shahasane Madhura
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Competitive Life Cycle

In the industry
Caused by a new disruptive technology
S-curve for sales/revenue
Initiall sales are low in the infance

As the technology shapes up, sales expand and peak

Over time it matures


Bell curve for competitors
Few competitors/players in the infancy stage

Growth phase brings many players

But as market grows, finally there’s a shakeout and the number of players reduce

And then a few dominant players are left for a long long time
There’s a pattern to margins but not a clear one
Initially in a new disruptive industry, the margins might be very low and can be negative

As the market expands and new competitors come in, the margins increase substantially

But in a mature market, its a different situation for each industry, whether there are enough margins left
to be made or not. So how the curve ends in a mature market is different for each industry
Digital music players - mp3 players - Bell curve
The first portable MP3 player was launched in 1997 by Saehan Information Systems, which sold its “MPMan" player in
Asia in spring 1998. In mid-1998, the South Korean company licensed the players for North American distribution to
Eiger Labs, which rebranded them as the EigerMan F10 and F20.

Then the market got flooded with mp3 players. In 2001, the ipod was launched,after which several companies closed
down.

Today, the whole mp3 player market is finished because of the disruption caused by smartphones
Assignment (Due next Wed, 5th Aug )
Research the details of revenue/ competitors / margins for your industries and display the above patterns
either for the industry as a whole, or for specific entrants/products in the industry.

You have to show just one pattern, either sales, competitors or margins, for any industry or product

3 member teams only. Create one single file with all the slides. Each team will have 3 slides only. One for
infancy, another for expansion and then for maturity. Animesh to collate all the slides and upload.

Slides should carry name of the presenter. No introductions required. No good evenings. Explain your
piece in 30 seconds. Anybody taking more than 30 seconds will lose 1 mark. If you take more than 45
seconds, you lose 2 marks.

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