Best In Brief
How industries change
Anita McGahan
Industries follow distinct change trajectories and investment in innovation is more likely to pay off if these pathways are taken into account. According to a study of US companies, industries evolve along four trajectories: radical, progressive, creative and intermediating. A firm cannot maximise its returns unless it is aligned to one of these change pathways and many companies incur losses when they try to innovate outside the change boundaries. Xerox is an example of a firm famous for its innovations but unable to...