Your business, or the one that you will be taking over through the transfer, is evolving in a specific industry that you need to understand well. Since they are often subject to change, industries can have a great impact on businesses and on the transfer process. A traditional industry with a certain stability requires a transfer that ensures continuity, but a turbulent industry makes it necessary to reevaluate strategies and operating modes at the business in order to adapt to change. Thus it is important to examine the state of the industry to which the business to be transferred belongs:
- Is it a traditional industry with a certain stability? If so, a transfer process favoring continuity may be the best choice.
- Is it an industry experiencing growth? Is it one where consolidation is taking place? Is it an industry in decline? In each of these scenarios, a transfer process favoring innovation may be the best choice.
To make a good assessment of the industry in which the business to be transferred belongs, you can use the Porter tool. It will allow you to examine the key political, economic, sociocultural, technological, environmental, and legal trends affecting this industry and, by extension, the business to be transferred.
Diagram: Transfer and Succession Contexts
(Industry)
References:
- Le Breton‐Miller, I., Miller, D. & Steier, L. P. (2004). Toward an integrative model of effective FOB succession. Entrepreneurship Theory and Practice, 28(4), 305-328.
- Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 25-40.