...empirical literature as well as in practice both market pioneering and later entrant strategy are outlined to lead to superior product performance. This literature review analyzes which strategy leads to superior product performance under which circumstances. Therefore, a conceptual framework is developed which illustrates the complex relationships of the integrated parameters. A detailed literature review is conducted to analyze theoretical as well as empirical approaches of strategy superiority. A holistic framework is introduced which depicts the superiority of a market strategy under given circumstances. Results suggest that being a pioneer or later entrant is not only a strategic decision on the company’s side but depends on various factors. The superiority of a market entry strategy needs to be evaluated individually for a new product. Finally, recommendations for future research are given. 1. Introduction Nokia’s communicator phones were the first smartphones on the market, including all essential characteristics: online access, navigation as well as apps to facilitate usage. However, being first on the market does not lead to a long-term success of Nokia smartphones. In 2007 Nokia had a market share of 49.4 % of the worldwide smartphone market, in 2012 the market share only adds up to 4.9 %. In April 2014, Nokia’s devices and services business was acquired by Microsoft. However, there are also first mover on the market who are still very profitable. Procter, Gamble...
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...exactly, are first-mover advantages? Under what conditions do they arise, and by what specific mechanisms? Do first-movers make aboveaverage profits? And when is it in a firm’s interest to pursue first-mover opportunities, as opposed to allowing rivals to make the pioneering investments? In this paper we examine these and other related questions. We categorize the mechanisms that confer advantages and disadvantages on first-mover firms, and critically assess the relevant theoretical and empirical literature. The recent burgeoning of theoretical work in industrial economics provides a rich set of models that help make our understanding of first-mover advantages more precise. There is also a growing body of empirical literature on order-of-entry effects. Our aim is to begin to provide a more detailed mapping of mechanisms and outcomes, to serve as a guide for future research. We define first-mover advantages in terms of the ability of pioneering firms to earn positive economic profits (i.e., profits in excess of the cost of capital). First-mover advantages arise...
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...are first-mover advantages? Under what conditions do they arise, and by what specific mechanisms? Do first-movers make aboveaverage profits? And when is it in a firm’s interest to pursue first-mover opportunities, as opposed to allowing rivals to make the pioneering investments? In this paper we examine these and other related questions. We categorize the mechanisms that confer advantages and disadvantages on first-mover firms, and critically assess the relevant theoretical and empirical literature. The recent burgeoning of theoretical work in industrial economics provides a rich set of models that help make our understanding of first-mover advantages more precise. There is also a growing body of empirical literature on order-of-entry effects. Our aim is to begin to provide a more detailed mapping of mechanisms and outcomes, to serve as a guide for future research. We define first-mover advantages in terms of the ability of pioneering firms to earn positive economic profits (i.e., profits in excess of the cost of capital). First-mover advantages arise...
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...disadvantages to a firms. In this paper, we categorize mechanisms that confer advantages and disadvantages on first-mover firms. Our aim is to begin to provide a more detailed research on the issues and to serve as a guide for future research. INTRODUCTION TO THE ISSUE The aim of this paper is also to present issues of importance for practitioners, including furthering our understanding of this issue in developing markets. As the growth of markets in developed countries has been slowing down, multi-national enterprises (MNEs) in developed countries are becoming more and more dependent on the growth of developing markets. With regard to the issue of first mover, what are the advantages and disadvantages of first mover strategy in a firm? It would be helpful for practitioners to have more knowledge of this issue. In recent years of strategic management scholars have expressed enormous interest in the resource based view of the firm. A previous winner of the SMJ best paper award, Birger Wernerfelt (1984), was one of the first to articulate this perspective on strategy. Later contributions include Barney (1986), Rumelt (1987), Dierickx and Cool (1989), Prahalad and Hamel (1990), Conner (1991), Amit and Schoemaker (1993), Peteraf (1993) and Teece, Pisano, and Shuen (1997). According to Hill (2011), first mover may refer to firms that accrue to early entrants...
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...Unit 3 Strategy Formulation Ronald Rogers MGT680-1303A-01: Strategic Management American Intercontinental University Synopsis Often a business, particularly a startup, has little to no choice in when to introduce a product or service. However, given the opportunity, market information, and competition data, managers should be able to make valid choices concerning the release time of that product. This paper addresses the advantages and disadvantages of first move or late move into a market. It also explains how and why companies have succeeded and failed in both theories. Part One: First Mover Theory First Mover Advantages (FMA) FMAs have a unique opportunity to create barriers to competition such as limited resources and patents. They may have a sustainable advantage in technology that is Intellectual Property (IP), R&D, Patents, and resources. They have a monopoly of sorts, however short term that it may be (Lieberman & Montgomery, 1988). Rapid expansion of market share with a new product is extremely likely. Introducing new products involves in-depth market research and a large investment of time and other resources. The results of the market penetration by a first mover can be difficult to overcome for subsequent entries. Setting the benchmark is an advantage that first movers can exploit. If they introduce a product that becomes a high demand item, establish the brand name and provide good service, then they set the bar really high for late entries. ...
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...Chinese market entry strategy for the Turner’s Ice Cream Introduction This report sets out to analyse the selected UK ice cream manufacturer – the Turner’s strategy to entry to China’s ice cream market. It uses SWOT analysis approach analyses the company’s strengths, weaknesses, opportunities, and threats. The report has identified a general marketing entry strategy which will help the company developing new market effectively. It contents the introduction of the Turner’s company in brief, the Chinese ice cream market, the SWOT analysis and the suggested marketing entry strategy. The Turner’s Ice Cream in brief The Turner’s Ice Cream was founded in 1950. Two years later, “Verona” rang of flavoured ice cream was introduced. By 1960, the company had over 30 outlets along the south coast of England, and by 1988, there were 250 Turners’ shops around the UK. The company has recently launched a franchise option, and there are now 14 franchisees operating near key tourist centres in England, Scotland, and Wales. Turner’s ice cream has justifiable acquired a high quality, upmarket image, and the company has continued to emphasise traditional values, traditional products, and traditional ingredients. From 2004 to 2006, the company’s sales stood at around 1.5 m GBP, trading profit reached 1.1 m GBP. The company’s profile looks OK, but there is no doubt that times are getting harder. The UK ice cream market previously is dominated by three large players – Walls, Lyons, and...
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...attractive to customers. Goal is to avoid pure competition Target market: group of likely consumers for product and service. Attract them with good marketing mix Marketing mix: shaping the combination of the product and approach to maximize customer value Predict tastes and preferences Attempt to understand human behavior- perception shape behavior, learned behavior over time creates expectations Factors influencing decision: culture, personal preference, economic, time available, life style Cast study: starbucks switching from competitive item to non competitive differentiated product Monopolistic competition structure: Many buyers, few large seller with complete product offering Information about product is no longer complete Sellers now offer very different products Market is not influences by one single buyer or seller Resources are free to move, ease of entry and exit How to find potential customer: segmentation Geographic- city or rural, Europe or middle east. Regional foods ex: Walmart: did it in a small town to avoid competition Demographic – age sex income education tech savvy look for major shifts Psychographic- life style, personality ex: goth Behavior- usage, loyalty, repeat purchase activity: ex: wegmans card Direct your product efforts to a particular segment rather than whole market Can then be divided into niche markets Opportunities come from looking beyond customers stated needs...
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...Table of Contents CHAPTER 01: COMPANY OVERVIEW 3 1.1 Introduction 3 1.2 Basic Information and Chronology since Inception 4 1.3 Vision 5 1.4 Mission 5 1.5 Objective 5 1.6 Corporate Focus 5 1.7 Management Philosophy 5 CHAPTER 02: INDUSTRY ANALYSIS 7 2.1 Rivalry among existing firms 7 2.2 Threat of entry of new firms 9 2.3 Threat of Substitute products or Services 10 2.4 Bargaining power of suppliers 10 2.5 Bargaining power of buyers 11 CHAPTER 03: COMPANY ANALYSIS 13 3.1 SWOT ANALYSIS 13 3.1.1 STRENGTHS: 13 3.1.2 WEAKNESSES: 14 3.1.3 OPPORTUNITIES: 14 3.1.4 THREATS: 15 3.2 Competitive Strategy Analysis: 16 3.2.1 Advantage of SPL in using an Integrated Strategy: 17 3.2.2 Disadvantages of SPL in using an Integrated Strategy: 17 CHAPTER 01: COMPANY OVERVIEW 1.1 Introduction The flagship company of the Square group of industries, Square Pharmaceuticals Limited (SPL) is the largest pharmaceuticals company in Bangladesh. Founded in 1958 and headquartered in Dhaka, Bangladesh, SPL develops, manufactures and markets drugs for humans and the animal world. The company owns and operates modern pharmaceutical factories mainly in Bangladesh and also has a separate division to operate a modern chemical factory which produces and sells basic chemical products. It also has divisions to produce and sell agrovet and pesticide products. It exports its products to Europe, Asia, Africa and South America. SQUARE Pharmaceuticals Limited (SPL) is the largest pharmaceutical company...
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...our team was positioned well with a good strategy and several strengths in our first couple of years. Despite thisstrong start, we struggled to adapt to the changing market conditions and adapting our strategy accordingly. Ultimately, we gained several new insights that should help us each in our future strategy formation andexecution efforts. Strategy As a co-management team we quickly formulated our plan of attack.We decided to plan weekly phone conference with all the managers of Distinguished Images. We felt that this would be the most effective opportunity for our management team to talk through our strategies andcollaborate on a plan of attack. By doing this, we were able to voice our intentions for the company and give our input as individuals to reach towardthe vision of the company as the weeks progressed. We also adopted ourcompany vision statement:“Distinguished Imaging strives to be the global market leader inreliable and technologically advanced digital cameras. We are focusedon meeting our customer’s needs for advanced technology productsand seek to be the 1st choice in digital imaging technology.”By having our vision statement early on, we were working to “be unified intoa coordinated, cohesive effort” (Thompson, Strickland & Gamble, 2008,p.15). From a strategic perspective, Distinguished Images initially sought to offer quality products at a value price point. Our goal was to use the “best-cost provider” strategy where we would provide good-to-excellent...
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...SMES' MARKET ENTRY STRATEGY: SUBSTITUTION INSTEAD OF NICHING Guan H Lim, Khai S Lee and Soo J Tan Abstract Existing research seems to suggest that the obvious strategy choice for SMEs, given the fact that they do not have plentiful resources, is to is to seek market niches. However, the very fact that SMEs do not have plentiful resources may mean that they would not be able to niche successfully beyond the short term. The bigger firms who have initially neglected the niches may try to wrestle the niche away from the SMEs, especially if the SMEs have successfully developed the market into a size that is sufficiently big and profitable. A better strategy choice for the SMEs might be to offer products/services that are substitutable to, but differentiated from, that offered by the incumbent bigger firms. This paper, through the use of deductive logic and actual case examples, shows why a substitution strategy might indeed be a better strategic choice for the SMEs. Introduction Conventional wisdom (see for examples Perry, 1987; Waterworth 1987; and Kotler, 1996) suggests that niching is the strategy choice of SMEs given that SMEs have limited resources. They do not have plentiful financial resources, and very often are also short on manpower especially those with the necessary managerial skills and marketing expertise. However, it is this very lack of resources that may impede the SMEs' ability to niche successfully and sustain its market entry in the long run This is because, in...
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...Michael Mirow Seminar Paper on Strategies to Achieve Market Leadership: The Example of Amazon (Summer term 2005) presented by: Sören Preibusch, 215995 Matthias Fleckenstein, 215274 Kottbusser Damm 24 Magistratsweg 21 10967 Berlin 13593 Berlin Berlin, May 17, 2005 Table of Contents I Table of Contents Table of Contents ............................................................................................ I Table of Abbreviations.................................................................................... II Table of Figures............................................................................................. III Table of Tables..............................................................................................IV 1 Introduction.................................................................................................. 1 2 Market Leadership as a Strategic Goal in Electronic Commerce ................ 1 2.1 Value Chains and Actors in EC............................................................. 1 2.2 Principles for Success in Electronic Commerce.................................... 3 2.3 Porter’s Branch Structure Analysis applied to EC Markets ................... 4 2.4 Context Factors and Value Creation Potentials in EC Markets ............. 8 2.5 First Mover Advantage and the Role of the Pioneer ............................. 9 3 Amazon.com – The Road to Market Leadership ..........................
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...National Chiao Tung University GMBA Program Global Technology Strategy McKinsey Quartely Creating value through Innovation Team Lolo - 9988542 Alfonso – 9988 Date: May 31, 2011 Summary Innovation, according to the article, involves the development of new products or processes and the knowledge that produces them and those new products can either take the form of high-level building blocks, midlevel intermediate goods and ground-level final products. The underlying knowledge for new products includes high-level general principles, midlevel technologies, and ground-level, context-specific rules of thumb but technological innovations, especially high-level ones, usually have limited economic or commercial importance unless complemented by lower-level innovations. The world that we live in facilitate the quick dissemination of knowledge and breakthroughs travel easily, but their national origins are fundamentally unimportant and the debate as to whether innovations or innovators make the greatest contribution to economic prosperity, is deemed as ‘not helpful’, because they all play necessary and complementary roles. The enhancement of research in China and India, and their share of ‘cutting-edge work’, will improve living standards in the United States, implying that other countries can benefit from the advances without them actually affecting the country’s economy. Many cross-border flows are important to innovators, namely, the dissemination of knowledge including...
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...iPad Prospects After the Kindle Fire: 65% Market Share and Most of the Profits par4par“But, in comparison with the iPad, the Kindle Fire has a 33 percent smaller display, no cameras, no 3G wireless, less memory and only two-finger multi-touc [...] 2 comments, 1 called-out + Comment now par4par “But, in comparison with the iPad, the Kindle Fire has a 33 percent smaller display, no cameras, no 3G wireless, less memory and only two-finger multi-touc [...] Amazon CEO Jeff Bezos introduces the Kindle Fire (Image by AFP/Getty Images via @daylife) Jeff Bezos unveiled the $199 Kindle Fire this morning with great fanfare, but a closer look should disappoint those looking for an iPad killer. The Kindle Fire is poised to nibble at Apple’s market share. But this low-cost and under-powered tablet is more likely to suffocate its Android-based brethren than the iPad and actually should cement Apple’s dominance of the general-purpose tablet market. On the plus side, the Kindle Fire has a custom Amazon user interface that supports tight integration with Amazon’s content and media apps. It also includes one month’s free subscription to Amazon Prime (a $6.58 value!), which includes free 2-day shipping and some free streaming video access. In short, at $199, the Kindle Fire is an attractive Amazon shopping and content consumption device. But, in comparison with the iPad, the Kindle Fire has a 33 percent smaller display, no cameras, no 3G wireless, less memory and only two-finger...
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...LARENCE BLACK, JIANI LIU Contents 1. Executive Summary……………………..…………..…………….p2 2. Situation Analysis………………………..…………..…………….p3 3. SWOT Analysis…………………………………………………..……p5 4. Key Assumptions…………………………….………………………p6 5. Marketing Objectives & Strategy.…..………………………p6 6. Action Plans….………………………………………………..………p7 7. Budget………….………………………………………………..………p8 8. Controls…….….………………………………………………..………p9 EXECUTIVE SUMMARY External analysis of Loonies marketing plan for period 1 revealed that during mentioned and further periods, the economic situation on the market is predicted to be stable with a low inflation rate (2-3%) which is expected not to cause any significant changes in company’s function. In general term, Loonies’ performance is very successful and the company is mostly favoured by Juliet market’s customers and investors. However, Sonite product market is highly competitive, where Loonies’ projects such as Loop (high-ended, Professionals and High Earners targeted product) and Lock (low-ended, Savers and partially Shoppers targeted model) take the 2nd and the 6th places respectively in terms of popularity and profitability. One more valid point analysed in current market situation is Loonies main competitors. Loop faces threats from ROCK and TONE, which have a similar set of features and functions but slightly more expensive then Loop. At the same time, Lock is under a pressure of SOFT and MOST products with significantly higher brand awareness...
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...Introduction 2 Types of strategy Corporate strategy Diversification Vertical Integration Takeover Entry into new business segments Disinvestments Role of headquarter Competitive strategy Product strategy Advertising measures Price strategy Make of buy Innovation strategy Building up market entry barriers Usage of economies of scale Building up alliances Competitive advantages 1. Company 2. Competitor 3. Customer Unique Selling Proposition The unique feature of a product, which enables to have a competitive advantage over other providers. The marketing concept of the unique selling proposition facilitates the successful promotion of products. Highlighting of an outstanding product feature supports the company in positioning their products and helps to convince consumers of its benefits. Different ways of value of the headquarter 1. Stand-alone Influence Separate influence on the strategies and the performance of the particular business fields 2. Linkage Influence Creating synergies by taking advantages of existing relations between business fields 3. Central Functions and Services Avoidance of redundancies by providing cost-efficient centralised services 4. Corporate Development Design of the business portfolio through purchase, sale and restructuring of business fields Business design The totality of how a company selects its costumers, defines and differentiates its offerings, defines the tasks it will perform itself and those it will outsource, configures its resources, goes to market, creates utility...
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