So, in phases 4 and 5 of the DILC you’d see a strategic reorientation by a firm, that’s shifted its mindset, its technical capacities, its production lines etc, and survived shocks that have killed off competitors.
Here are a couple of quotes from the “car safety” paper-
Reorientation is a highly strategic process, which top-level managers will only undertake in response to externally imposed regulations (‘compliance’) or if they see possible economic opportunities (e.g. positions in new markets). Radical reorientation is a gradual process progressing through stages: (a) defensive hedging: exploiting existing capabilities and exploring new ones(March, 1991), (b) diversification: milking sunk investments, while introducing new technologies in (small) markets, (c) reorientation, which involves changes in core beliefs, mission, and business models.
(Geels and Penna, 2015: 70)
Reorientation implies substantial change in the industry regime, i.e. not only in technical capabilities, but also in belief systems, identities, and industry mission
(Geels and Penna, 2015: 68)