Abstract
The purpose of this research paper is to investigate how a company in a mature industry is capable of remaining competitive by exercising its existing industry resources, and modeling an innovation value chain for itself to highlight the drivers of innovation, productivity and firm growth. Through the case study of smartphone vendors Nokia and Apple, we discuss how the two deploy their distinct strategic organization models in a mature industry. One firm develops its new business and market new products within its boundaries. Another firm looks for other ways to increase the efficiency and effectiveness of its innovation process, for instance, through active search for new technologies and ideas outside the firm. The four major conclusions of this context are: (1)When one industry’s life cycle from growth stage enters to maturity stage,The existing opne innovation value chain is easily to become the bottleneck. At this stage, most of industry needs to rotate with close innovation model, In order to activate and extend the wave of new high-growth industry cycle. (2)As an industry enters its maturity, it will be easier for new comers to create value from innovations through their business model which elements are sourced internally or externally. They shift towards a more open way of innovating. (3)When an industry enters the beginning of its maturity, there are opportunities for newcomers to tap into the industry with their business strategy that differs from the existing players. (4)Executing under a closed innovation model should be fully supported by internal and external resources accessible through open innovation model, in order to maximize market value of new products and services.