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| Author: | Dowell, G. |
| Title: | Product line strategies of new entrants in an established industry: evidence from the U.S. bicycle industry |
| Journal: | Strategic Management Journal
2006 : OCT, VOL. 27:10, p. 959-979 |
| Index terms: | bicycle industry new enterprise markets products strategy USA |
| Language: | eng |
| Abstract: | Product line (hereafter as: prd-ln./prd-lns.) breadth of a firm in a given market has both benefits and costs. These effects can be seen by examining the number of a firm's products and the degree of complexity represented by the prd-ln. The effects of breadth are especially important for new entrants in a relatively mature industry. This study examines the breadth-survival relation on new entrants in the bicycle industry from 1993 to 1998. It is found that firms offering a greater number of products, those with very simple and very complex prd-lns., and those whose prd-lns. have a moderate degree of overlap with competitors, have the highest survival rates. |
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