STRATEGYMonths to result

Problems Constraining Industry Development Framework

Challenges facing emerging industries

Problem it solves

unclear strategic direction

Best for

Emerging industries with high growth potential

Not ideal for

Mature industries with low growth potential

Overview

Why this framework exists

The Problems Constraining Industry Development Framework describes the challenges facing emerging industries, such as the inability to obtain raw materials and components, the lack of infrastructure, and the absence of product or technological standardization. This framework highlights the importance of understanding the challenges facing emerging industries.

Core principles

3 total
  1. Emerging industries face significant challenges, including the inability to obtain raw materials and components
  2. The lack of infrastructure and the absence of product or technological standardization can limit the growth and development of emerging industries
  3. Understanding the challenges facing emerging industries is crucial for companies seeking to enter or grow in these industries

Steps

3 steps
  1. Identify the challenges facing the industry
    Develop a strategy to identify the challenges facing an emerging industry, such as the inability to obtain raw materials and components
    Pro tipUse market research and analysis to understand the challenges facing the industry
    WarningBe aware of the risks of underestimating or overestimating the challenges facing the industry
  2. Develop a strategy to overcome the challenges
    Develop a strategy to overcome the challenges facing an emerging industry, such as investing in research and development or partnering with other companies
    Pro tipUse scenario planning to anticipate and prepare for potential future scenarios
    WarningBe prepared to pivot or adjust course in response to changing market conditions
  3. Manage the risks of entering an emerging industry
    Develop a strategy to manage the risks of entering an emerging industry, such as the risk of failure or the risk of being overtaken by competitors
    Pro tipUse risk management techniques to mitigate the risks of entering an emerging industry
    WarningBe prepared to pivot or adjust course in response to changing market conditions

Checklist

Saved in your browser

Examples

2 cases
Solar heating industry

The solar heating industry faced significant challenges in obtaining raw materials and components, highlighting the importance of understanding the challenges facing emerging industries

OutcomeCompanies in the industry were able to overcome these challenges and achieve success
Digital watches industry

The digital watches industry faced significant challenges in obtaining raw materials and components, highlighting the importance of understanding the challenges facing emerging industries

OutcomeCompanies in the industry were able to overcome these challenges and achieve success

Common mistakes

3 traps
Underestimating the challenges facing the industry
Underestimating the challenges facing the industry can lead to a lack of preparation and a higher risk of failure
Overestimating the challenges facing the industry
Overestimating the challenges facing the industry can lead to a lack of action and a missed opportunity
Failure to manage risks
Failing to manage the risks of entering an emerging industry can lead to a higher risk of failure

Origin story

How this framework came to be

The concept of problems constraining industry development has been observed in various industries, including the solar heating industry, where companies have faced significant challenges in obtaining raw materials and components.

Source

Traced to primary
Source · BOOK
Competitive Strategy
Michael E. Porter · 1980
Open source →

Related frameworks

Browse all Strategy →