TITLE

Firm Growth, Industry Growth, and Business Failure

AUTHOR(S)
Moulton, Wilbur N.; Thomas, Howard
PUB. DATE
August 1988
SOURCE
Academy of Management Best Papers Proceedings;1988, p27
SOURCE TYPE
Conference Proceeding
DOC. TYPE
Proceeding
ABSTRACT
Four business failure pathways based on firm and industry growth are described and studied: market deterioration, market maladaptation, fight for market share, and loss of control. Firms with growing sales increased assets and debt and declined more rapidly than firms with declining sales. Firm effects dominated industry effects.
ACCESSION #
4979632

 

Related Articles

  • The Experience Curve Doctrine Reconsidered. Alberts, William W. // Journal of Marketing;Jul89, Vol. 53 Issue 3, p36 

    The author studies a relationship for a typical business unit between an advantaged cost position and the decision to build market share. He first offers a rebuttal of experience curve doctrine, the widely taught argument that causation runs from share building to cost advantage. The rebuttal...

  • Diagnosing the Product Portfolio. Day, George S. // Journal of Marketing;Apr1977, Vol. 41 Issue 2, p29 

    The product portfolio concept provides a useful synthesis of the analyses and judgments during the preliminary steps of the planning process, and is a provocative source of strategy alternatives. If nothing else, it demonstrates the fallacy of treating all businesses or profit centers as alike,...

  • MULTIPLE MARKET ENTRY, COST SIGNALLING AND ENTRY DETERRENCE. Srinivasan, Kannan // Management Science;Dec1991, Vol. 37 Issue 12, p1539 

    A low-cost incumbent may limit price to informatively signal her cost to an uncertain potential entrant, and therefore deter entry. We enrich this model by investigating the strategic pricing behavior of the incumbent when she operates in multiple markets. We demonstrate that the low-cost...

  • RESOURCE PARTITIONING AND THE EVOLUTION OF SPECIALIST ORGANIZATIONS: THE ROLE OF LOCATION AND IDENTITY IN THE U.S. WINE INDUSTRY. Swaminathan, Anand // Academy of Management Journal;Dec2001, Vol. 44 Issue 6, p1169 

    Analysis of founding and mortality rates of specialist organizations in the U.S. wine industry over the period 1941-80 support Carroll's (1985) location-based resource-partitioning model--crowding of generalists in the market center creates opportunities for specialists. Further, specialists are...

  • STRATEGIC WINDOWS. Abell, Derek F. // Journal of Marketing;Jul1978, Vol. 42 Issue 3, p21 

    The article discusses the practice of strategic market planning. It is defined as the management of any business unit in relation to anticipating and responding to changes which affect the marketplace for their respective products. Frequently market changes are so far reaching that the...

  • DEFENSIVE MARKETING STRATEGIES: AN EQUILIBRIUM ANALYSIS BASED ON DECOUPLED RESPONSE FUNCTION MODELS. Kumar, K. Ravi; Sudharshan, D. // Management Science;Jul1988, Vol. 34 Issue 7, p805 

    The entry of a new product (attacker) into a competitive market is likely to provoke responses from some or all of the existing products (defenders). This paper investigates the development of optimal defensive strategies based on an understanding of the possible reactions of all the defenders...

  • Entry Order and Its Relationship to Market Share and Competitive Advantage: A Study of New Corporate Ventures. Miller, Alex; Gartner, William B.; Wilson, Robert // Academy of Management Best Papers Proceedings;1988, p64 

    Building on previous conceptual and empirical research, hypotheses about the effects of entry order on market share and competitive advantage are offered. An analysis of 119 new corporate ventures in the Strategic Planning Institute's STRA database found that early entrants achieved superior...

  • What Market Forces Impact Organizational Performance? Chang, Richard Y. // Chief Learning Officer;Dec2005, Vol. 4 Issue 12, p17 

    The article reports that with an increased understanding of information needs, chief learning officers will also be able to define the competencies required at all levels to improve performance on the job. Although a variety of market forces may need to be addressed by an organization, there are...

  • Improving firm performance by matching strategic decision-making processes to competitive dynamics. Ketchen Jr., David J.; Snow, Charles C.; Street, Vera L. // Academy of Management Executive;Nov2004, Vol. 18 Issue 4, p29 

    In the effort to improve a firm's profitability, managers continuously make decisions about whether to launch new strategic initiatives as well as how to respond to other firms' moves. Managers are more likely to make effective decisions if they fully understand the firm's competitive...

Share

Other Topics