Survival of The Fittest: How Competitive Service Overlap and Retail Format Impact Incumbents’ Vulnerability to New Entrants

Efua Obeng, Ryan Luchs, J. Jeffrey Inman and John Hulland

Journal of Retailing, 2016, vol. 92, issue 4, 383-396

Abstract: Many retailers invest in ancillary services to provide shoppers with additional reasons to come to their stores. However, it is unclear whether these services insulate incumbents from new entrants. We address this question by examining how the size and uniqueness of an incumbent's service portfolio protects its sales after a new competitor enters. We study uniqueness by introducing the notion of “competitive service overlap” (CSO) that operationalizes service similarity, and show both that retailers are best served by offering many services and that particularly successful retailers have more unique service portfolios. Furthermore, the impact of uniqueness is most prominent when a grocery incumbent faces a discounter entrant (e.g., Kroger facing a Wal-Mart entry).

Keywords: Retail; Competition; Service; Strategy (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022435916300215
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jouret:v:92:y:2016:i:4:p:383-396

DOI: 10.1016/j.jretai.2016.07.001

Access Statistics for this article

Journal of Retailing is currently edited by A. Roggeveen

More articles in Journal of Retailing from Elsevier
Bibliographic data for series maintained by Catherine Liu ().