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Masih Nabizadeh, Tehran Polytechnic
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
Competitive Life Cycle (CLC)
analysis is the assessment
of competition within
dynamic market
environment.
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
Product Life Cycle
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
Product Life Cycle
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
• The CLC is split into three phases with the S-curve:
- Emergent phase
- Growth phase
- Mature phase
• Demarking each of the three phases associated with
a single S-curve are transitory inflection points:
- Disruption
- Annealing
- Shakeout
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
• This period is often characterized by what others
have referred to as the “era of ferment” as business
experience with various design.
• During this phase, we typically observe widespread
entry by both diversifying incumbent firms and new
ventures.
Emergent phase
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
• The emergent phase ends up as customer adoption
accelerate and the product concept solidifies around
a core set of design features.
• In many cases, what emerges is a “ dominant
design”. We refer to this process as annealing – a
reduction in variance in product offering
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
• Business focus typically shifts from development to
scaling.
• This phase is often characterized by:
increasing head-to-head competition
putting the prices down
complementary capabilities
Growth phase
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
• When marginal growth rates begin declining, a
competitive shakeout often ensues.
• Marginally competitive firms exit the market and
a handful of dominant players emerge.
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
• Step1. Charting your positions on the CLC.
• Step2. Characterizing the CLCs for your businesses.
• Step3. Assessing your competitors’ positions.
How do we use it?
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
• Step1. Charting your positions on the CLC. The positioning will determine the allocation of investment
among technology-enabled development, commercialization,
scaling and improvement ; in essence, the composition of your
growth portfolio
• Step2. Characterizing the CLCs for your businesses.
• Step3. Assessing your competitors’ positions.
How do we use it?
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
• Step1. Charting your positions on the CLC.
• Step2. Characterizing the CLCs for your businesses. Characterize the specific competitive context where you
compete.
Graph cumulative industry revenues for a product or
technology class that can produce an S-curve highlighting
transitions.
• Step3. Assessing your competitors’ positions.
How do we use it?
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
• Step1. Charting your positions on the CLC.
• Step2. Characterizing the CLCs for your businesses.
• Step3. Assessing your competitors’ positions. To put it in context of your competitive environment, you need
to chart as best you can your main competitors as well.
Realizing that new unforeseen competitors may emerge.
How do we use it?
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
How do we use it?
Competitive Life Cycle
Analysis
Capability
Competitor Analysis
3 strategies
How to Conduct
Introduction
Porter five forces
How do we use it?
