Chen Junsheng Steed 25839217
·Failure of management instead of market saturation is the key reason for growth industry being threatened, slowed or stopped.
·Endanger their futures by improperly defining their purposes. Eg. Railways are in trouble because they were railroad-oriented instead of transportation-oriented. Hollywood view TV as a threat.
·Be customer-oriented and watchfulness for opportunities is a key point for success. Eg. Nemours & Company; Corning Glass Works.
Error of Analysis
·Narrowly define a product, an industry or a cluster leads to decline.
Shadow of Obsolescence
· To survive, industries have to plot the obsolescence of what now produces their livelihood.
·There is no such thing as growth company. Only companies organized and operated to create and capitalize on growth opportunities. ·4 conditions guarantee self-deceiving cycle (population, no competition, production, preoccupation) Eg. Petrol is over self-confident. Focus on improving the efficiency of making product, not improving marketing. NOT realize the potential dangers.
1. Improvements of gasoline come from outside the oil industry 2. Innovation in automobile fuel marketing are originated by small new oil companies that are not focus on production. Consequence: Fail like railroads industry in the future.
·Mass Production emphasizes on selling not marketing.
Difference between selling and marketing
·Selling focus on the needs of the seller, marketing on buyer. ·Selling: convert product into cash. Marketing: creating,delivering and consuming. Eg. Failure: Cars industry in Detroit.
Success: Fort. Name a price so low as to force everybody in the place to the highest point of efficiency.
·Gasoline: reduce its unpopularity completely means climinating it.(Gas station) Working on exotic fuel substitutes
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