Convergence Flashcards
1
Q
Types of industry
Convergence
A
I’ll make sure to include examples in the smart notes if they are provided in the text. Here is the revised smart note:
Generic Types of Industry
- Fragmented industries: Small firms, each selling to a small portion of the market. (e.g., dry cleaning services, hairdressing services, and shoe repairs)
- Emerging industries: Newly developing industries with potential for growth. (e.g., the global space travel industry and the telecommunication industry in Africa)
- Mature industries: Industries with products in the mature phase of their life cycle. (e.g., automobile manufacture and soft drinks manufacture)
- Declining industries: Industries with falling sales and decreasing competition. (e.g., coal mining in Europe)
- Global industries: Industries operating on a global scale. (e.g., the microprocessor industry and the professional football industry)
Industry Convergence
- Occurs when two or more industries or segments converge, serving the same customer markets.
- Can have a major impact on business strategy.
- Example: The convergence of the entertainment, voice communication, and data communication industries, where voice, data, and entertainment services can be delivered over the same network.
Types of Convergence
- Demand-led convergence: Customers drive convergence by seeking interchangeable or complementary products.
- Supply-led convergence: Suppliers identify links between industries and bridge the gap. Example: The convergence of the entertainment, voice communication, and data communication industries is probably supply-led, as suppliers became aware of the technological possibilities before consumers became aware of the convenience.
