Strategies in Emerging Industries

Objectives of this Session

1. Review the landscape of emerging industries

2. Pinpoint features & challenges of firms

3. Highlight critical decision dimensions

4. Enunciate strategies available to firms operating in emerging industries

#1: EMERGING INDUSTRIES

ALTERNATIVE ENERGY

Nissan Leaf (electric car)

ADVANCED EQUIPMENT MFG.• Industrial robotics and automation, Sensor

technology, Micro-electronic technology, Embedded systems, NEMS/MEMS technology

The Physical World as an Info System

THE INTERNET OF THINGS

LIVESTREAMING, ipTV

• Apple TV, Google TV, Boxee, Roku are superior solutions to the traditional set top box.

3D PRINTING

MIT scientists are

working on machines

that will take basic

compounds & turn

them into gourmet

dishes. Engineers

have been developing

3-D printers that build

chocolate objects.

eLEARNING, ePUBLISHING

NICHE SOCIAL NETWORK

• Facebook’s ubiquity has led to the many niche social networks for sharing photos, videos, music playlists to theatre memories……

APPI-FICATION• Using QR codes & geo-spatial features built into

smartphones many corporate campuses use an employee’s smartphone as sole id device.

CONTINUITY ACROSS DEVICES Consumers are demanding the ability to pick up the session on a different device in exactly the same place they left off, demanding a continuous experience across call logs, text messages, notes and activities as they move from laptop to desktop, from tablet to mobiles.

SMART & SECURE CITIES

SONGDO (S. KOREA) & MASDAR (UAE)

#2. Features & Challenges

• New, unproven market

• Proprietary knowhow

• Parallel technologies, no clear consensus

• Usually low entry barriers

• Learning curve effects

• Inducing initial purchase & allaying consumer’s doubts regarding new product

• Price expectations of customers & postponement

• Undercapitalization constraint

#3. Key Decision Dimensions

1. How to finance initial operations till sales take off?

2. Which market segments or competitive advantage to pursue to gain front-runner position?

#4. Strategies in Emerging IndustriesFIRST MOVER ADVANTAGE

Take leadership position through risk bearing & creativity. Use Differentiation strategy (broad or focused). Grab first mover advantage

Strategies in Emerging IndustriesBECOME A TECHNOLOGY MENTOR

Adopt the dominant technology quickly. Push to perfect it. Forge strategic alliance with related/complementary technology experts

Strategies in Emerging IndustriesPUSH INITIAL SALES

• Keep it easy & cheap for first time buyers. Resort to price cuts to attract next line of customers

• Pursue new applications/customer groups/geographic areas

Strategies in Emerging Industries

• ENSURE STEADY PRODUCTION & SCALING UP

• Strategic alliances with suppliers of raw material & capital. Capture learning effects.