Product entry in a fast growing industry: the LAN switch market

Roberto Fontana () and Lionel Nesta ()

No 126, SPRU Electronic Working Paper Series from University of Sussex, SPRU - Science and Technology Policy Research

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 and firm competencies. We find that incumbents specialise 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.

Keywords: switch industry; markets; competition; firm capabilities; product entry (search for similar items in EconPapers)
JEL-codes: L11 L63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ent, nep-net and nep-tid
Date: Written 2004-10-10
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Related works:
Journal Article: Product entry in a fast growing industry: the LAN switch market (2006)
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