chapter  7
Corporate strategies in information technology firms
ByYasunori Baba, F. Ted Tschang
Pages 29

In information technology (IT) industries, the managerial strategies and behaviour of firms have three main characteristics. The first is the substantial degree of uncertainty and risk stemming from the incredible change in the business model used in these industries. The corporate risks include those of acting as well as of not acting; this leads to tremendous shake-ups in the industrial structure over time, with winners in one year becoming losers one or two years afterwards. Firms that hope to survive the transitions have had to reinvent themselves and create their core competencies anew.