Strategies for late entrants in a network market
- Title
- Strategies for late entrants in a network market
- Author
- 이웅희
- Keywords
- Network Effect; Late Entrant; Business Strategy
- Issue Date
- 2019-10
- Publisher
- International Academy of Business and Economics
- Citation
- Review of Business Research, v. 19, no. 1, Page. 57-62
- Abstract
- Standard theory of network effect predicts that in an industry displaying network effect, a first mover will enjoy many advantages over late entrants due to positive feedback and increasing returns. Although there exist numerous actual business cases that defy such a prediction, this assertion was seldom challenged before. This paper proposes that if late entrants take into account three strategic factors - 1) existence of supporting industry, 2) existing incumbent’s strategic focus, and 3) speed of technological changes – in formulating their entry strategy, then their chances of breaking into the network market protected by incumbents will be higher. Finally, the subjective interpretation of the three strategic factors are discussed.
- URI
- https://iabe.org/IABE-DOI/article.aspx?DOI=RBR-19-2.8https://repository.hanyang.ac.kr/handle/20.500.11754/154656
- ISSN
- 1546-2609; 2378-9670
- DOI
- 10.18374/RBR-19-2.8
- Appears in Collections:
- GRADUATE SCHOOL[S](대학원) > BUSINESS ADMINISTRATION(경영학과) > Articles
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