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

Author

Listed:
  • Roberto Fontana

    (CESPRI - Bocconi University - CESPRI - Bocconi University)

  • Lionel Nesta

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

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.

Suggested Citation

  • Roberto Fontana & Lionel Nesta, 2006. "Product Entry in a Fast Growing Industry: The LAN Switch Market," SciencePo Working papers Main hal-03417180, HAL.
    • Handle: RePEc:hal:spmain:hal-03417180
    DOI: 10.1007/978-3-540-49465-2_6
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03417180
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    References listed on IDEAS

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    Cited by:

    1. repec:hal:spmain:info:hdl:2441/6127 is not listed on IDEAS
    2. Roberto Fontana & Lorenzo Zirulia, 2015. "“…then came Cisco, and the rest is history”: a ‘history friendly’ model of the Local Area Networking industry," Journal of Evolutionary Economics, Springer, vol. 25(5), pages 875-899, November.
    3. repec:hal:wpspec:info:hdl:2441/6121 is not listed on IDEAS
    4. Sean T. Hsu & Susan K. Cohen, 2022. "Overcoming the Incumbent Dilemma: The Dual Roles of Multimarket Contact During Disruption," Journal of Management Studies, Wiley Blackwell, vol. 59(2), pages 319-348, March.
    5. Wang, Pengfei, 2019. "Price space and product demography: Evidence from the workstation industry, 1980–1996," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    6. Roberto Fontana & Alessandro Nuvolari & Bart Verspagen, 2009. "Mapping technological trajectories as patent citation networks. An application to data communication standards," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(4), pages 311-336.
    7. Roberto Fontana & Lionel Nesta, 2009. "Product Innovation and Survival in a High-Tech Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(4), pages 287-306, June.
    8. repec:hal:spmain:info:hdl:2441/6121 is not listed on IDEAS
    9. repec:spo:wpmain:info:hdl:2441/6121 is not listed on IDEAS
    10. Roberto Fontana & Lionel Nesta, 2007. "Entry, Innovation and Exit from LAN Switch Industry," Working Papers hal-00973045, HAL.
    11. R. Fontana & L. Zirulia, 2015. "then came Cisco, and the rest is history : a history friendly model of the Local Area Networking industry," Working Papers wp993, Dipartimento Scienze Economiche, Universita' di Bologna.
    12. repec:spo:wpmain:info:hdl:2441/6127 is not listed on IDEAS
    13. Roberto Fontana & Lionel Nesta, 2007. "Entry, Innovation and Exit. Evidence from the LAN switch Industry," Documents de Travail de l'OFCE 2007-02, Observatoire Francais des Conjonctures Economiques (OFCE).
    14. repec:spo:wpecon:info:hdl:2441/6121 is not listed on IDEAS
    15. repec:spo:wpecon:info:hdl:2441/6127 is not listed on IDEAS
    16. repec:hal:wpspec:info:hdl:2441/6127 is not listed on IDEAS
    17. Fontana, Roberto & Zirulia, Lorenzo, 2023. "How far from the tree does the (good) apple fall? Spinout creation and the survival of high-tech firms," Journal of Economic Behavior & Organization, Elsevier, vol. 213(C), pages 26-49.

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    More about this item

    Keywords

    Product introduction; Entry; LAN industry;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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