4 Trajectories of Industry Change

The video discusses a model explaining how industries evolve over time due to various factors. It highlights that industries and companies must adapt to avoid obsolescence, which can be caused by threats to core activities or assets. Technological changes can also drive industry evolution. Organizations should prepare for inevitable changes by streamlining structures and reducing activities that hinder growth.

What is a primary reason for industries to change over time?

• To expand into new markets

• To increase the number of employees

• To avoid becoming obsolete

• To reduce production costs

Which of the following is a threat to an organization's core activities?

• Increased competition

• Loss of human capital

• Technological advancements

• Economic recession

How can technological change affect an industry?

• By reducing the need for certain goods or services

• By increasing the demand for raw materials

• By stabilizing market prices

• By creating more job opportunities

What should organizations prepare for according to the theory discussed?

• Lower revenue and streamlined structures

• Increased organizational activities

• Higher revenue growth

• Expansion into new industries

Why is it important for organizations to streamline their structures?

• To increase employee satisfaction

• To improve product quality

• To reduce costs and adapt to changes

• To expand their market share