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This article if looking at the importance it is for organisation to have knowledge of the industry to establish making wise decision for investments

January 25, 2019 0 Comment

This article if looking at the importance it is for organisation to have knowledge of the industry to establish making wise decision for investments (Purchase, Olaru and Denize 2014). Companies have to keep up with the new trend within their industry, keep developing by understanding the direction the organisation is going and were the prime changes need to be made.
What I found interest in this article is how McGahan (2004) explain how industries evolve, by looking at the four trajectories of change (Radical organic, receptive, intermediating and blockbuster). The author also proposed only using five force framework and the S-curve/product life cycle model (Frynas and Mellahi 2015) is not enough to understand the evolution of industries. Understanding industry change is vital, McGahan propose industries change as a result of these to threats of obsolescence; core activities and the core assets of the industry. For the organisation to succeed company strategy should be parallel with the industry trajectory changes.