CAOT 31 Lecture Notes - Lecture 17: Emerging Markets, Technology Adoption Life Cycle, Complementary Good
3 Oct 2020
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Document Summary
Strategic management of technology and innovation summary chapter 5 timing of entry. A number of first-mover advantages, and disadvantages, can shape how timing of entry is related to likelihood of success. First movers = the first entrants to sell in a new product or service category. Early followers = entrants that are early to the market, but not the first. Late entrants = entrants that do not enter the market until the time the product begins to penetrate the mass market or later. First-mover advantages: brand loyalty & technological leadership, preemption of scarce assets, exploitation of buyer switching costs. In industries characterized by increasing returns, early entrants may accrue learning and network externality advantages that are self-reinforcing over time. Earn long-lasting reputation as a leader in that technology domain helps sustain company image, brand loyalty, market share even if some competitors have entered the market.
