Industry Change McGahan

Posted in Marketing and Strategy Terms, Total Reads: 1186
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Definition: Industry Change McGahan

Anita M McGahan is the professor of Management at Boston. She published a model in Oct 2004 in Harvard Business Review which describes the four trajectories of industry change. This modal describes the changes in the industry and how it happens. By knowing the industry change it is easy for the management to make investment decision.

As per McGahan the factor that lead to change in the industry are basically:

  • Change required due threat to industry asset
  • Change required due Threat to industry activity

As per the modal following are the path that company takes while going through change:

  • Radical: this is followed when industry faces threat to both assets and activity
  • Progressive: this is followed when neither of the threat is faced
  • Creative: this is implemented when underlying asset are under threat but activities are smooth
  • Intermediating: this is followed when activities are under threat but asset are not.


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