scholarly journals Market Entry, Product Quality And Price Competition

2015 ◽  
Vol 10 (2) ◽  
pp. 62-82 ◽  
Author(s):  
Sameer Mathur ◽  
Prem Prakash Dewani
Keyword(s):  
Product Quality ◽  
Price Competition ◽  
Market Entry ◽  
Incumbent Firm ◽  
Quality Choice

Abstract We study an entrant firm’s product quality choice and the price competition arising between the entrant and the incumbent firm. We show that the entrant firm should introduce a relatively higher (lower) quality than the incumbent firm when the consumers’ valuation for quality is sufficiently large (small). We also study how the incumbent firm modifies its price in response to the ensuing price competition. We find that the incumbent firm should decrease its price. We also profile how the incumbent firm’s price non-linearly depends on consumers’ valuation for quality.

Entry Deterrence, Coordinating Advertising and Pricing in Markets with Consumption Externalities

2018 ◽  
Vol 19 (2) ◽  
Author(s):  
Adele Whelan
Keyword(s):  
Price Competition ◽  
Entry Deterrence ◽  
Fixed Cost ◽  
Pricing Strategies ◽  
Consumption Externalities ◽  
Strategic Investment ◽  
Incumbent Firm ◽  
First Mover Advantage ◽  
Success Function ◽  
Consumption Externality

Abstract This paper extends the entry deterrence literature by examining coordinating advertising and pricing in markets with consumption externalities using a stochastic success function. Optimal advertising and pricing strategies are analysed when an incumbent firm faces a challenger with a product of equal quality. I show that strategic entry deterrence using advertising is possible and optimal entry deterrence involves strategic pre-commitment to over-investment relative to the non-strategic simultaneous advertising benchmark. I show that when entry deterrence is not possible the incumbent does not possess a first mover advantage and optimal entry accommodation involves strategic investment in advertising with intensified price competition congruent with the non-strategic simultaneous advertising benchmark. The findings suggest that an incumbent’s ability to deter entry through coordinating advertising in a market with products of equal quality is sensitive to the size of the fixed cost of entry that the challenger must incur and the consumption externality parameter.

Product Quality and Market Size: Price Competition Between a Large and Small Country

2006 ◽  
Vol 6 (1) ◽  
pp. 1850080 ◽  
Author(s):  
Jannett K Highfill ◽  
Robert C Scott
Keyword(s):  
Product Quality ◽  
Free Trade ◽  
Price Competition ◽  
Market Size ◽  
Home Market ◽  
Small Country ◽  
Price Effects ◽  
Social Surplus ◽  
Sales Increase

In a two-country world for a product which in the absence of trade is provided by a monopoly in each country, opening trade effectively creates a world duopoly rather than two separate country monopolies. Suppose the goods produced in the competing countries differ in quality because the firm's home market sizes differ and quality is chosen before trade opens. Our results suggest that consumers benefit in free trade both from the choice of qualities and from the price competition. Social surplus for both countries is higher in trade than autarky—and although normally firms lose due to the increased competition, occasionally one of the firms may actually gain in trade. The competition between firms means that the trade price is less than the autarky price, but sales increase, sometimes enough to offset the price effects.

The Business Effects of Standardization for SMEs

2019 ◽  
Vol 17 (2) ◽  
pp. 21-40
Author(s):  
Manabu Eto
Keyword(s):  
Open Innovation ◽  
Price Competition ◽  
Market Entry ◽  
Japanese Government ◽  
Large Role ◽  
Niche Markets ◽  
The Creation ◽  
Dissemination Of Technology

Standardization activity is a type of open innovation, specifically an outbound-revealing open innovation. Through standardization activities, a given technology spreads, its effects extend to the market, and the market expands. However, in many cases, competition intensifies, and price competition occurs. To succeed as global businesses, SMEs should take a strategy known as “Niche Top” in Japan. Standardization activities are more likely to constitute a risk for SMEs. However, the Japanese government has established a system that actively encourages SMEs to standardize. The authors of this manuscript conducted interviews with companies that are targets of this standardization system and investigated how these companies expand their businesses through standardization activities while still securing profits. The results show that standardization by SMEs does not cause the dissemination of technology and the expansion of markets; rather, it helps such SMEs erect barriers to market entry through the creation of standards and plays a large role in securing shares in niche markets.

What the patent dance of the Biosimilars Act means for biosimilars

2014 ◽  
Vol 20 (4) ◽  
Author(s):  
David A. Fazzolare ◽  
Joanna Brougher
Keyword(s):  
Price Competition ◽  
Market Entry ◽  
Patent Protection ◽  
Reference Product ◽  
Title Vii ◽  
President Obama ◽  
Biological Products ◽  
Related Information ◽  
The Us ◽  
Biologic Product

There are currently only two biosimilars on the market in the US in contrast to the 21 biosimilars have been approved in Europe since 2006. Part of the reason for the lack of biosimilars is that until recently, there has been no abbreviated pathway for a biosimilar to reach the market meaning that biosimilars had to undergo the long and costly process of obtaining approval just like an innovator biologic product. After years of negotiation, however, the Biologics Price Competition and Innovation Act (the “Biosimilars Act”) was signed into law on March 23, 2010, by President Obama as Title VII of the Patent Protection and Affordable Care Act. The Biosimilars Act established an abbreviated pathway by which the FDA could approve generic versions of previously licensed biological products. The Biosimilars Act sets forth several requirements for biosimilar applications, including the so-called “Patent Dance” which describes the process by which the biosimilar applicant and the reference product sponsor (“RPS”) exchange patent-related information before the biosimilar can enter the market. In this article, we will explore what the Patent Dance is and what it means for biosimilars that are seeking market entry in the US. 

scholarly journals Model Peningkatan Loyalitas Pelanggan dengan Pengujian terhadap Servicescape, Kualitas Pelayanan dan Kepuasan Pelanggan

2018 ◽  
Vol 11 (2) ◽  
pp. 181
Author(s):  
Marno Nugroho ◽  
Sahrul Romadhon
Keyword(s):  
Customer Satisfaction ◽  
Product Quality ◽  
Customer Loyalty ◽  
Price Competition ◽  
Sampling Method ◽  
Sampling Techniques ◽  
Fashion Industry ◽  
Innovative Strategies ◽  
Market Leader ◽  
Improve Service Quality

In the era of globalization, the development of the fashion world with a variety of models and designs is increasing very rapidly. This condition has triggered a cycle of changing the style of dress that is dynamic, especially in the watch fashion industry. In addition to referring to the time the watch can also give a distinctive impression to the wearer. The sampling method is carried out using non probability sampling techniques by means of purposive sampling. By wearing a watch we can look more elegant. With a fairly large number of competitors, triggering the clock shop to focus on product quality and price competition, but the competition is not enough because there are still many aspects that can be used by the clock store to win the competition and become a market leader. Innovative strategies are needed to survive and win the competition, including strategies to improve service quality and rearrange Servicescape in this regard with regard to customer satisfaction and customer loyalty.

scholarly journals Economic and Environmental Implications of Quality Choice under Remanufacturing Outsourcing

2020 ◽  
Vol 12 (3) ◽  
pp. 874 ◽  
Author(s):  
Wei He ◽  
Lan Liang ◽  
Kai Wang
Keyword(s):  
Life Cycle ◽  
Product Quality ◽  
New Products ◽  
Quality Level ◽  
Economic Perspective ◽  
Environmental Implications ◽  
Environmental Friendly ◽  
Quality Choice ◽  
Original Equipment Manufacturers ◽  
Environment Performance

Although many studies have recently investigated how the product quality impacts on economic and environment performance under remanufacturing, all of them assume that remanufacturing operations are undertaken by the original equipment manufacturers (OEMs) or independent remanufacturers (IRs). However, many OEMs such as Lexmark, Canon, and Epson filed lawsuits with those IRs without licensing, but outsourced the remanufacturing operations to several contracted remanufacturers (CRs). We therefore extend the prior research to investigate the economic and environmental implications of OEMs’ strategic desired quality level choices under remanufacturing outsourcing. That is, we develop two models corresponding to two scenarios where OEMs (1) undertake remanufacturing in-house or (2) outsource it to a CR. Our results show that, to create a less intense cannibalization problem for new products sales, OEMs would be likely to choose a lower product quality when outsourcing remanufacturing to a CR. More importantly, from the economic perspective, we find that outsourcing remanufacturing to a CR hurts the OEM and the industry. However, from the environmental angle, our results reveal that there is a ratio threshold for environmental impact for different life cycle phases, above which remanufacturing in-house is definitely beneficial for OEM in economics and environment, but for the rest, outsourcing is equally or more environmental-friendly, despite cutting down the profit.

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