Study questions

Key points: • Early work: 5-forces, strategic groups, generic strategies • Bain type I/O : S-C-P- paradigm • Industry effect: attractiveness of industry (5-forces), threat of new entrants, threat of substitutes, buyer power, supplier power, rivalry within the industry • Strategic groups: clusters of firm which hold similar strategies in terms of key decision variables  mobility barriers • Firm effect: generic strategies: cost leadership, differentiation, focus

Key points: • Pattern recognition: there are regularities in the development of technology across different context • Pattern management: Critical success factors change in more or less predictable ways as technology develops overtime • Disruptive technologies/innovation: competence-destroying, incumbent firms dominant design now outdated or destroys the architectural knowledge of the firm • Failure to meet customer needs, focus on old value network, whereas this is a dynamic concept  too close to the customer base • Make sure that the internal organization is able to adapt to architectural innovation: alters the way existing components in a product work together • 4 phases: first mover advantage in first phase does not automatically mean this is the case in the next phase: 1. Embryonic phase: developing technological competences 2. Market experimentation phase: focus on adaption and organizational capabilities 3. Emerging consensus on standards phase: dominant design emerges 4. Established standard phase: secure competitive competition, competition back to normal • Managerial cognition and dominant logic: Dominant logic defines what the firm is about, what its competitors are, what makes it successful. But is based on past success and directs and restrict search activities in relation to innovation. Managers used to this old set of dominant beliefs, restrict search capacities in innovation and influences capability development. Make sure managers remain open minded and welcome new opportunities (R&D).