Why Do Firms Enter a New Product Market? A Two-Dimensional Framework for Market Entry Motivation and Behavior

2014 ◽  
Vol 32 (2) ◽  
pp. 263-278 ◽  
Author(s):  
Namwoon Kim ◽  
Sungwook Min ◽  
Seoil Chaiy
Keyword(s):  
Market Entry ◽  
Product Market ◽  
New Product ◽  
Two Dimensional ◽  
And Behavior

scholarly journals Bottleneck Resources, Market Relatedness, and the Dynamics of Organizational Growth

2021 ◽  
Author(s):  
Sungyong Chang ◽  
J. P. Eggers ◽  
D. Daniel Keum
Keyword(s):  
Market Entry ◽  
Firm Growth ◽  
Growth Dynamics ◽  
Product Market ◽  
New Product ◽  
Strategic Decision ◽  
Industry Data ◽  
Organizational Growth ◽  
Resource Dynamics ◽  
Bottleneck Resources

Entering a new product market requires assembling a bundle of resources. Because missing a single resource can foil the entire entry effort, we argue that bottleneck resources—those most difficult to obtain or sell externally—anchor the direction of firm growth. We characterize market resources as bottlenecks to product market entry, because they are (on average) more challenging to obtain and sell than technological resources, and we articulate why the importance of market resources varies with the strength of external markets for technology. Using cross-industry data linking firms’ product portfolios with patents, we find resource dynamics whereby market resources drive the strategic decision to enter, and firms fill technological gaps using both internal research and development and external acquisitions (joint ventures and alliances). Our study underscores the importance of resources for firm growth dynamics and specifically highlights market resources as the bottleneck that constrains and directs the direction of product market entry.

Competition network structure and product market entry

2014 ◽  
Vol 36 (11) ◽  
pp. 1688-1696 ◽  
Author(s):  
Paul F. Skilton ◽  
Ednilson Bernardes
Keyword(s):  
Network Structure ◽  
Market Entry ◽  
Product Market

Customer Value and New Product Retailing Dynamics

2010 ◽  
pp. 49-71
Author(s):  
Dr. Rajagopal
Keyword(s):  
Customer Value ◽  
Analytical Approach ◽  
New Products ◽  
Product Market ◽  
New Product ◽  
Product Performance ◽  
Use Value ◽  
Value Concept ◽  
Competitive Structure

The customer value concept is utilized to assess product performance and to determine the competitive structure of the new products. The analytical approach to the new product-market structuring based on customer value may be fitted well within the microeconomic framework. The measure of customer value as the product efficiency may be viewed from the customer’s perspective towards a ratio of outputs (e.g., perceived use value, resale value, reliability, safety, comfort) that customers obtain from a product relative to inputs (price, running costs) that customers have to deliver in exchange. The efficiency value derived can be understood as the return on the customer’s investment.

scholarly journals Capital Market Returns to New Product Development Success: Informational Effects on Product Market Advertising

2018 ◽  
Vol 56 (1) ◽  
pp. 37-56 ◽  
Author(s):  
Kyung M. Park ◽  
Pradeep K. Chintagunta ◽  
Inho Suk
Keyword(s):  
Product Development ◽  
Stock Returns ◽  
New Product Development ◽  
Capital Market ◽  
Abnormal Returns ◽  
Product Market ◽  
New Product ◽  
Direct To Consumer ◽  
Direct To Consumer Advertising ◽  
The Capital Market

The authors aim to answer the following question: If the capital market reacts with abnormal stock returns to new product development success events, do these returns influence subsequent marketing decisions? Drawing on informational market feedback and managerial learning theories, the authors posit that when firms are uncertain about how responsive the product market will be to their marketing activities, signals received from the capital market help them update their beliefs about the product market’s responsiveness. In the pharmaceutical context, the authors decompose the abnormal returns at a new drug approval event into components that the firm can and cannot predict (i.e., predicted and unpredicted abnormal returns) and find that the postapproval advertising budget is larger when unpredicted abnormal approval returns are higher. Furthermore, this tendency is more pronounced for spending on detailing than for direct-to-consumer advertising. Consistent with these higher budgets, the authors find that postlaunch advertising is more effective when unpredicted abnormal approval returns are higher, particularly for detailing spending (vs. direct-to-consumer advertising). Overall, this study suggests that information flows from the capital market’s initial perceptions at new product introduction play an important role in subsequent marketing decisions in the product market.

Linking Creativity Measurements to Product Market Favorability: A Data-Mining Approach

2017 ◽  
Author(s):  
Christian E. Lopez B. ◽  
Xuan Zheng ◽  
Scarlett R. Miller
Keyword(s):  
Data Mining ◽  
Early Stage ◽  
Product Market ◽  
New Product ◽  
Design Stage ◽  
Future Market ◽  
Early Design ◽  
Early Design Stage ◽  
Data Mining Approach ◽  
The Future

While creative ideas can lead to market success and payoff, they are also associated with high risks and uncertainties. One way to reduce these uncertainties is to provide decision makers with valuable information about the innovative potential and future success of an idea. Even though several metrics have been proposed in the literature to evaluate the creativity of early design-stage ideas, these metrics do not provide information about the future product success or market favorability of new product ideas. Hence, existing metrics fail to link the creativity of early-stage ideas to their future market favorability. In order to bridge this gap, the current work proposes a new metric to estimate early design-stage ideas’ favorability and analyzes its relationship with current creativity metrics. A data-mining driven method to assess the future favorability of new product ideas using customers’ reviews of current market products that shared similar features with the new ideas of interest is presented. The results suggest that the new product idea favorability is positively correlated with relative creativity metrics and existing product market favorability ratings. This method can be used to help designers gain a better insight into the creativity and market favorability potential of new product ideas in early design-stages via a systematic approach; hence, helping reduce the risks and uncertainties associated with early-phase ideas during the screening and selecting process.

Evaluating Frequency Error Property of Wavefront of Large Optics by PSD Collapse

2007 ◽  
Vol 364-366 ◽  
pp. 108-112
Author(s):  
Xiao Feng Cheng ◽  
Wan Guo Zheng ◽  
Xiao Dong Jiang ◽  
Huan Ren ◽  
Jing Yuan ◽  
...  
Keyword(s):  
Spectral Density ◽  
Power Spectral Density ◽  
Radon Transform ◽  
Intermediate Frequency ◽  
Frequency Error ◽  
Two Dimensional ◽  
Power Spectral ◽  
Valid Data ◽  
And Behavior ◽  
Evaluating Method

Operation of two-dimensional Power Spectral Density (2-D PSD) of large optics wavefront is briefly described and PSD collapse is introduced to evaluate the intermediate frequency error property of wavefront. As PSD collapse is Radon transform projection of 2-D Power Spectral Density at any angle, all valid data of wavefront of optics are used in calculation of the PSD collapse and the features of 1-D PSD were inherited in PSD collapse. Although PSD collapse is as same as 1-D PSD in unit and behavior style, it is better for evaluating intermediate frequency error property of optics wavefront than 1-D PSD or 2-D PSD. As PSD collapse calculation uses all valid data of evaluated optics wave front and can be directly perceived through its profile, the PSD collapse may possibly be the standard evaluating method of PSD.

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