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Simultaneous competitor and customer diffusion: a market growth model based on market space and competition
Debruyne, Marion
Debruyne, Marion
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Publication Type
Working paper
Editor
Supervisor
Publication Year
2006
Journal
Book
Publication Volume
Publication Issue
9
Publication Begin page
Publication End page
Publication NUmber of pages
32
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Abstract
This paper addresses the interaction between competitive dynamics and market evolution. Specifically, it focuses on the development of the market of a new product, in terms of customer adoption as well as competitive entry. The objective of this paper is to develop a model for the growth stage of a new market that addresses the supplier and customer diffusion process and the interaction between them. The contribution of our approach is threefold: (i) the development of a competitor diffusion model, (ii) the combination of a competitor diffusion model with a customer diffusion model, recognizing the interplay between competitive entry and market-level diffusion, and (iii) the recognition that competitive entry effects in the diffusion model are endogenous, resulting from the entry decisions of firms.
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Keywords
Market Strategy & Innovation, Innovation, Market Strategy