The Influence of Market Strategy on Performance: Which Strategy Type Leads to Superior Performance Under Which Circumstances?

3235 Words Mar 23rd, 2016 13 Pages
Abstract
In theoretical and empirical literature as well as in practice both market pioneering and later entrant strategy are outlined to lead to superior product performance. This literature review analyzes which strategy leads to superior product performance under which circumstances. Therefore, a conceptual framework is developed which illustrates the complex relationships of the integrated parameters. A detailed literature review is conducted to analyze theoretical as well as empirical approaches of strategy superiority. A holistic framework is introduced which depicts the superiority of a market strategy under given circumstances. Results suggest that being a pioneer or later entrant is not only a strategic decision on the company’s
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Thus, it remains unclear which variables influence the performance of a new product. Therefore the literature review at hand examines which strategy type is superior under which circumstances. Specifically, the aim of this literature review is to answer the following question: Is the pioneer strategy superior for new product performance?

The paper at hands depicts a conceptual framework explaining the different market strategies, the market and environmental conditions affecting new product performance, the deployment of internal resources as well as the performance measurement. Thereafter the literature is reviewed to outline the theoretical and empirical explanations for the superiority of a market strategy. Lastly, a framework is introduced which holistically analysis the superiority of the market timing strategy.
2. Conceptual Framework
The existence of various market strategies is outlined in literature, each affecting the company’s success differently. A brief description of market strategies gives an overview about the company’s possibilities to enter the market (Figure 1). Further, market characteristics and internal resources are depicted and their impact on the successful implementation of strategies is explained. To account for generalizability of results, the options to measure product performance are described.

Market strategies differ with regard to their categorization. Regarding the timing, four different

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