Industry Transition Framework
Adapting to industry maturity
The Industry Transition Framework outlines the necessary adjustments companies must make as their industry matures. This includes shifts in competitive focus, organizational structure, and systems to support the new strategic priorities. The framework highlights the need for companies to adapt to the changing requirements of industry maturity, such as increased attention to costs, customer service, and marketing.
- Companies must be prepared to adjust their key competitive priorities to the often differing requirements of industry maturity.
- The company must be prepared to reeducate and remotivate personnel at all levels as it enters the maturity stage.
- General management must also be aware of subtle changes in the motivational climate in the organization that can accompany transition to industry maturity.
- Assess the industry's stage of developmentDetermine whether the industry is in a growth, maturity, or decline stage. This will help companies understand the necessary adjustments to make in their competitive strategy.Pro tipUse tools such as the product life cycle model to assess the industry's stage of development.WarningFailing to accurately assess the industry's stage of development can lead to ineffective strategic adjustments.
- Adjust competitive prioritiesShift focus to costs, customer service, and marketing as the industry matures. This may require changes in organizational structure and systems to support the new strategic priorities.Pro tipUse techniques such as cost-benefit analysis to determine the most effective areas to focus on.WarningFailing to adjust competitive priorities can lead to a loss of competitiveness in the market.
- Implement changes in organizational structure and systemsMake necessary changes to support the new strategic priorities, such as tighter budgeting, stricter control, and new performance-based incentive systems.Pro tipUse tools such as organizational design models to determine the most effective structure and systems for the company.WarningFailing to implement necessary changes can lead to ineffective strategic adjustments.
- Reeducate and remotivate personnelPrepare personnel at all levels for the changes accompanying industry maturity, including shifts in competitive focus and organizational structure.Pro tipUse techniques such as training and development programs to reeducate and remotivate personnel.WarningFailing to reeducate and remotivate personnel can lead to resistance to change and decreased morale.
Crown Cork and Seal achieved a dramatic turnaround by shifting its focus to costs, customer service, and marketing, and implementing changes in organizational structure and systems to support its new strategic priorities.
Burger King used a similar approach to compete with McDonald's, focusing on costs, customer service, and marketing, and implementing changes in organizational structure and systems to support its new strategic priorities.
The framework is based on the idea that industries go through different stages of development, and companies must adjust their strategies accordingly. As industries mature, the competitive landscape changes, and companies must adapt to remain competitive.