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This article if looking at the importance it is for organisation to have knowledge of their industry in order to make wise decision for investments (Purchase, olaru and Denize 2014). Companies have to keep up with the new trend within their industry keep developing by paying understanding to which directing the industry is going and where the necessary change need to be made.
What I found interest in this article is how McGahan (2004) explain how industries evolve, by looking at the four trajectories of change (Radical organic, receptive, intermediating and blockbuster). The author also proposed only using five force framework and the S-curve/product life cycle model (Frynas and Mellahi 2015) is not enough to understand the evolution of industries. Understanding industry change is vital, McGahan propose industries change as a result of these to threats of obsolescence; core activities and the core assets of the industry. For the organisation to succeed company strategy should be parallel with the industry trajectory changes.
First and foremost company needs to assess which trajectory that their company if moving along, what are the core asset and activities of the firm to be able to make informed decision on the strategy to take. These path will help the firm take recognise merging opportunities. What organisation have to understand that change invertible. An example video stores such as blockbuster disappeared because of intermediate industry change in the industry, movies and music could now be accessed online Netflix, amazon, video store core activities became useless because of internet and cut the mediator between the supplier and the customer.

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