Strategic Response of an Incumbent Firm in IT Intensive Industry: Few Reflections

Omprakash K. Gupta (), M. Mallikarjun, Namjae Cho and Jeevan Jaisingh
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Omprakash K. Gupta: Prairie View A&M University, College of Business, Prairie View, TX 77446, USA
M. Mallikarjun: Nirma Institute of Management, Sarkhej-Gandhinagar Highway, Post: Chandlodia, Via: Gota, Ahmedabad, India 382 481, India
Namjae Cho: Department of Business Administration, Hanyang University, Seoul, Republic of Korea
Jeevan Jaisingh: Purdue University, Krannert School of Management, West Lafayette, IN 47907, USA

International Journal of Information Technology & Decision Making (IJITDM), 2003, vol. 02, issue 03, 373-380

Abstract: In this paper, an attempt has been made to look at the strategic options available for an incumbent firm in an information technology intensive industry. The traditional Stackleberg Leader Follower model fails to hold in this industry since costs decline substantially over time, and the incumbent firm cannot maintain a dominant position in the industry. This paper makes an attempt to look at few strategic options available for an incumbent firm under these circumstances.

Keywords: Information technology intensive industry; Stackleberg model; strategic response (search for similar items in EconPapers)
Date: 2003
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DOI: 10.1142/S0219622003000707

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