TSMA Yearbook 2018

76 2018 Yearbook 3 Ecosystem development stages Moore (1993) also brings up the life circle concept of business ecosystem. The life of business ecosystem is divided into four stages: 1). Birth; 2). Expansion; 3). Leadership; 4). Self-Renewal or Death. 1. Expansion stage: To build up an ecosystem. On this stage, it is the pioneering species to build up an ecosystem. And there are two important matters: the first is to create a better value than the present one. Because the business ecosystem is still at the early stage of development. The structure and scope are still incomplete. The enterprises for survival need to provide better values to customers so that they can draw in more clients and win higher market shares. The second matter is to integrate resources. At this stage, the enterprises need to invest and meanwhile to recognize and improve the value chain so as to provide customers much better values. 2. Expansion stage: To expand the ecosystem Growing with the formation of ecosystem, the value system and cooperation internets are mostly completed. The enterprises have to achieve the economy scope and then they can expand their business scope, cooperation internet and the categories of ecosystem. 3. Authoritative stage: To establish the authority in the ecosystem At this stage, certain species will become the main leader in the whole group. The importance of its status will also grow with the expansion of the ecosystem and become steady. For the species which obtain the significant position, the foremost important thing is to remain its authority in the ecosystem. Usually a great number of competitors start to enter the ecosystem at this stage and pose threats to the position of the authority in the ecosystem. Those with authority need to apply many strategies such as improving the business logistics, product innovation or strategic alliance so as to solidify their own status and prevent from the external threats to replace them. 4. Renewal stage: To renew or face death The four stage belongs to the declining stage. The enterprise is afraid of the shrinking ecosystem or even disappearing in the big environment. At this stage, the species in the ecosystem have to continue improving per formance and evolve with the whole ecosystem so that they can keep their own competitiveness. In the meantime, they must