Transcript IMEN301_Discussion Questions

Discussion Questions
October 10, 2012
POSTECH Strategic Management of Information and Technology Laboratory
(POSMIT: http://posmit.postech.ac.kr)
Dept. of Industrial & Management Engineering
POSTECH
Discussion Questions
■ Chapter 5. Timing of Entry
1. What are some of the advantages of entering a market early? Are there any advantages to
entering a market late?
– Entering a market early
• Opportunity to establish brand loyalty and technological leadership
 Increasing installed base
• If the market is characterized by increasing returns,
1) moving up the learning curve before their competitors
2) building an installed base that keeps increasing due to the self-reinforcing nature of network externality
processes
– Entering a market late
• Cheaper, easier, and more certain
• Avoiding much of the development expense and risk borne by the early movers
• Fine-tuning the product to fit customer needs (which are now more certain) better
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Discussion Questions
■ Chapter 5. Timing of Entry
2. Can you think of an example of a successful a) first mover, b) early follower, and c) late
entrant? Can you think of unsuccessful examples of each?
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a) Successful first mover: Apple
a’) Unsuccessful first mover: Blackberry
b) Successful early follower: Samsung mobile
b’) Unsuccessful early follower: LG electronics
c) Successful late entrant: Microsoft Excel
c’) Unsuccessful late entrant: SKY
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