search query: @indexterm new products / total: 1069
reference: 166 / 1069
| Author: | Boulding, W. Christen, M. |
| Title: | Sustainable pioneering advantage? Profit implications of market entry order |
| Journal: | Marketing Science
2003 : SUMMER, VOL. 22:3, p. 371-392 |
| Index terms: | Marketing New products Competitive advantage Performance appraisal |
| Language: | eng |
| Abstract: | There is strong theoretical and empirical evidence supporting the idea that "first-to-market" (here: f-to-m.) leads to an enduring market share advantage. In sharp contrast to these findings, a study finds that at the business unit level being f-to-m. leads, on average to a long-term profit disadvantage. This result holds for both a sample of consumer and industrial goods, leading to questions about the validity of first mover advantage, in and of itself, as a strategy to achieve superiour performance. This study replicates the typical demand-side pioneering advantage but finds an even greater average cost disadvantage, which is the source of the pioneering profit disadvantage. In an extended analysis, this paper shows that f-to-m. leads to an initial profit advantage, which, depending on the sample or profit measure, lasts for about 12-14 years before turning into a disadvantage. In addition, there are more results reported. |
SCIMA