Product Entry in a Fast Growing Industry: The LAN Switch Market

Roberto Fontana (1) , Lionel Nesta (2)

1 CESPRI - Bocconi University
2 OFCE - Observatoire français des conjonctures économiques (Sciences Po)

We provide empirical evidence on market positioning by firms, in terms of market niche, distance from technological frontier and dispersion. We focus on the switch industry, a sub-market of the Local Area Network industry, in the nineties. Market positioning is a function of the type of firms (incumbents versus entrants), market size and contestability as well as firm competencies. We find that incumbents specialize in high-end segments and disperse their product in a larger spectrum of the market. Instead, entrants focus on specific market niches. Market size, market contestability and firm competencies are also important determinants of product location.

Mots clés: Product introduction; Entry; LAN industry

Domaines: Economies et finances

Roberto Fontana, Lionel Nesta. Product Entry in a Fast Growing Industry: The LAN Switch Market. Journal of Evolutionary Economics, 2006, 16 (1-2), pp.45 - 64. ⟨10.1007/978-3-540-49465-2_6⟩. ⟨hal-03417180⟩