Strategic Approaches: Industry Convergence vs. Slicing PPT

This PPT slide, part of the 22-slide Strategy Chessboard - Redefine the Industry PowerPoint presentation, presents a strategic framework for redefining industries through 2 primary approaches: convergence and slicing. It begins with an overview that emphasizes the need for organizations to adapt their competitive positioning by either pursuing opportunities for industry convergence or implementing slicing strategies. The term "slicing" refers to the process of breaking down an industry into its fundamental components or natural verticals.

The content outlines how industries are defined by their offerings, the companies involved, and the resources they utilize. It notes that these definitions are not static; they evolve over time due to various factors. According to Nils Stieglitz, industry convergence can arise from several catalysts, including new technologies, the introduction of new products, or the emergence of substitute or complementary products. The slide highlights that when convergence occurs, organizations must reconfigure their capabilities to align with the new industry dynamics.

The concept of slicing is also discussed, indicating that industries can be segmented along multiple dimensions. This includes separating products to create new verticals, breaking up the industry value chain, and dismantling barriers to entry. These actions can lead to significant shifts in market structure and competitive dynamics.

The slide concludes with a cautionary note that actions taken by industry leaders in this context will likely provoke similar responses from competitors, suggesting a need for vigilance and strategic foresight. Overall, the framework encourages executives to think critically about how to navigate industry changes effectively.

This slide is part of the Strategy Chessboard - Redefine the Industry PowerPoint presentation.

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