Product Entry in a Fast Growing Industry: The LAN Switch Market
20 Pages Posted: 8 Dec 2008
Date Written: December 5, 2008
Abstract
We provide empirical evidence on market positioning by firms, in terms of market niche, distance from technological frontier and dispersion. We focus on the switch industry, a sub-market of the Local Area Network industry, in the nineties. Market positioning is a function of the type of firms (incumbents versus entrants), market size and contestability as well as firm competencies. We find that incumbents specialize in high-end segments and disperse their product in a larger spectrum of the market. Instead, entrants focus on specific market niches. Market size, market contestability and firm competencies are also important determinants of product location.
Keywords: Product introduction, Entry, LAN industry
JEL Classification: L1, O33
Suggested Citation: Suggested Citation
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