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Journal of Evolutionary Economics

, Volume 16, Issue 1–2, pp 45–64 | Cite as

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

  • Roberto FontanaEmail author
  • Lionel Nesta
Regular Article

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 as well as firm competencies. We find that incumbents specialize 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

Product introduction Entry LAN industry 

JEL Classification

L1 O33 

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Copyright information

© Springer 2005

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of Pavia, and CESPRI - Bocconi UniversityMilanItaly
  2. 2.Observatoire Français des Conjonctures EconomiquesDépartement de Recherche sur l’Innovation et la ConcurrenceValbonneFrance

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