Positioning strategies in the case of oligopolistic competition: The case of telecommunications industry in Senegal

Babacar Ndiaye and Cheikh Thiaw ()
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Babacar Ndiaye: LARSES - Laboratoire d'Etude et de Recherche en Sciences Economiques et Sociales - UASZ - Université Assane Seck de Ziguinchor [Sénégal]
Cheikh Thiaw: GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur

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Abstract: Innovation is the major instigator in competitive industry. The competition for innovation is traditionally analyzed within the framework of deterministic and stochastic models (Reinganum, 1989). Boone (2001), Fethke and Birch (1982) have respectively analyzed the standard models of competitive strategies in a duopoly and oligopoly industry. By focusing our analysis on deterministic models that is, the models without technological uncertainty, this paper attempts to interpret the model of Boone (2001) in order to determine the choice of positioning in a context of cumulative innovation. Thus, taking into account the case of the telecommunications' sector in Senegal, we try to understand the motivations of the incumbent firm (called first mover) to implement cumulative innovation in order to maintain its position in spite of the investments of entering firms (called follower).

Keywords: Innovation; competition; deterministic models; telecommunications industry; Oligopoly (search for similar items in EconPapers)
Date: 2011-08-18
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00864556
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Published in African Journal of Business Management (Academic Journals), 2011, 5 (16), pp.6651-6656. ⟨10.5897/AJBM10.1167⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00864556

DOI: 10.5897/AJBM10.1167

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