Corporate restructuring: the pitfalls of changing industry structure

Industries have life cycles and the transition from one stage to the next can have considerable strategic implications for incumbent firms. Restructuring companies and other companies bringing about change in an industry have a vital role to play in the process of industry transition and restructuring. Their participation in the process, however, is not always as successful as it might be. Too often the restructuring companies and other firms acting as change catalysts themselves eventually fail to survive. An understanding of the nature of industry dynamics and the insight required to take best advantage of situations encountered before, during and after industry transition are key ingredients of successful restructuring moves. An understanding of industry dynamics requires informed research and information as its basis.