How to Spot Industry Shifts

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Today’s Read

Overview

Andrew S. Grove’s Only the Paranoid Survive is like a masterclass in recognizing and responding to massive changes in business and life. It’s about those make-or-break moments Grove calls Strategic Inflection Points (SIPs). Get the book here.

What Are Strategic Inflection Points (SIPs)?

Imagine you’re driving along a familiar road, and suddenly the path splits. One way leads to success; the other, failure. That’s an SIP.

These points happen when something big—technology, competition, or customer behavior—changes the rules. What used to work just… doesn’t anymore.

Here’s how Grove explains it:

“A strategic inflection point is when the balance of forces shifts, and a business must adapt or fall behind.”

Example:
In the 1980s, Intel dominated the memory chip market. Then Japanese competitors flooded the market with cheaper, better-quality chips. Intel was forced to rethink everything. They pivoted to focus on microprocessors, which ended up saving the company.