In industries characterized by a very large investment and rapid technological dynamics, cyclic behavior acts as an environment in which firms must develop a strategy. Barriers to entry in such conditions is extremely high, but they can be broken - as shown in the flat panel display industry, which has seen consecutive records of Japanese, Korean, then, the Taiwanese firms in the last decade. In its short history, the industry has already put four cycles ("crystal cycle") and the fifth decline is now in sight. However, the distinguishing feature of the industry is the fact that the company successfully emerged only during the industry downturn by engaging in counter-cyclical investment, nor one firm has entered a period of recovery. This provides a starting point for the strategic analysis of this rapidly growing industry, conducted through a dynamic structure, which complements the "competitive forces" as presented in the static method, Michael Porter has more than two decades ago. Very important to rely on a dynamic, and static framework to fully understand the strategic options open to the firm. "Hide
by John A. Matthews Source: California Management Review 28 pages. Publication Date: February 1, 2005. Prod. #: CMR301-PDF-ENG
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