Strategic lessons of value migration in IT industry

This article proposes an approach for strategic formulation in new IT industry by learning from successful strategies in a related developed industry. It is motivated by the fact that technological innovations and consumer IT markets follow similar trends. It takes the dynamic nature of the value chain into account by using a retrospective approach to reveal the process of value migration in the developed IT industry. In emerging industries that face many market uncertainties, strategic lessons from the developed industry enables managers to better envision future market conditions and implement effective strategies to capture more value. We have performed a comparative study of the development of the PC and residential broadband markets to illustrate the concept of our approach. Companies in the emerging residential broadband industry can adopt proven effective strategies in PC industry.