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ADVANTAGES OF FOLLOWERS IN EMERGING MARKETS

Year 2007, , 159 - 166, 10.06.2007
https://doi.org/10.14783/maruoneri.684352

Abstract

As a consequence of globalization, companies consider the whole world as a potential marketplace. Throughout the 1990s, financial investors, corporate strategists and political leaders from industrialized fVestern countries have started to intensify their focus on emerging markets. Although proper entry timing into these markets is of prime importance, research until now has focused mainly on particular product sectors in the U.S. Studies on entry timing into emerging markets have claimed that early access to target markets is a desired sitııation since early entrants learn about the specifications of the market and adjust their marketing strategies accordingly. The present article argues, that being a second mover has many benefıts, too, because many examples illustrate how a late entrant may compete successfully with early entrants by identifying mistakes first movers make and bringing distinctive advantages to the market.

References

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  • [7] Mascarenhas, B. (1997). The order and size of entry into international markets. Journal of Business Venturing, 12(4), 287-299.
  • [8] Lambkin, M. (1988). Order of entry and performance in new market. Strategic Management Journal, 9, Summer, 127-140.
  • [9] Liebermann, M.B. & Montgomery, D.B. (1998). First- Mover (dis)Advantages: Retrospective and link with the resource-based view. Strategic Management Journal, 19(12), 1111-1125.
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  • [13] Shaver, J.M.; Mitchell, W. & Yeung, B. (1997). The effect of own-firm and other fırm experience on foreign direct investment survival in the United States. Strategic Management Journal, 18(10), 811-824.
  • [14] Luo, Y. (1998). Timing of investment and international expansion performance in China. Journal of International Business Studies, 29 (2), 391-408.
  • [15] Luo, Y. & Peng, M.W. (1998). First mover advantages in investing in transitional economies. Thunderbird International Business Review, 40(2), 141-163.
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  • [25] Gupta, A.K. & Govindarajan, V. (2001). Converting global presence into global competitive advantage. The Academy of Management Executive, 15(2), 45-59.
  • [26] Cottrell, T. & Sick, G. (2001). First mover (dis)advantage and real options. Journal of Applied Corporate Finance, 14(2), 41-51.
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  • [31] Kalyanaram, G. & Urban, G.L. (1992). Dynamic effects of the order of entry on market share, trial penetration and repeat purchases for frequently purchased consumer goods. Marketing Science, 11 (3), 235-250.
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  • [33] Robinson, W. (1988) Sources of market pioneer advantages: the case of industrial goods industries. Journal of Marketing Research, 25, February, 87-94.
  • [34] Urban, G.L.; Carter, T.; Gaskin, S. & Mucha, Z. (1986). Market share rewards to pioneering brands: an empirical analysis and strategic implications. Management Science, 32(6), 645-659.
  • [35] Telis, G.J. & Golder, P.N. (1996). First to market, fırst to fail? Real causes of enduring market leadership. Sloan Management Review, 37(2), 65-76.
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  • [41] Ramo, J.C. (1996). Winner takes ali. Time, September 16, 57-64.
  • [42] Golder, P.N. & Tellis, G.J. (1993). Pioneer advantage: Marketing logic or marketing legend. Journal of Marketing Research, 30 (2). 158-170.
  • [43] Werle, M. Erfolgsfaktor Zeit im E-Commerce: Bedeutung, For- und Nachteile der Pionier- und Folgerstrategie. (http://www.uni-siegen.de/dept/fb05/market/lfm/veranst/ssOl/Seminar EC.htm). [01.08.2002].
  • [44] Zhang, S. & Markman, A.B. (1998). Overcoming the early entrant advantage: The role of alignable and nonalignable differences. Journal of Marketing Research, 35(4), 413- 426.
  • [45] Schnaars, S.P. (1994). Managing imitation strategies: how later entrants seize market share from pioneers. New York: Free Press.
  • [46] Rigdon, J.I. The second-mover advantage. (http://www.redherring.com/index.asp?layout=story&chan nel=70000007&doc_id=850013685). [24.04.2003].
  • [47] Bonardi, J.P. & Durand, R. (2003). Managing network effects in high tech markets. Academy of Management Executive, 17(4), 40-53.
  • [48] Witzel, M. First-mover advantage — Being fırst into a market brings retvards, but also risks. (http://www.business-minds.com/article.asp7iteiTF312). [24.04.2002] ,
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  • [52] Cusumano, M.A.; Mylonadis, Y. & Rosenbloom, R.S. (1992). Strategic maneuvering and mass-market dynamics: the triumph of VJTS över Beta. Business History Review, 66(1), 51-95.
  • [53] Simmonds, K. (1999). International marketing-avoiding the seven deadly traps. Journal of International Marketing, 7(2), 51-67.
  • [54] Bolton, K.M. (1993). imitation versus innovation: lessons to be learned from the Japanese. Organization Dynamics, 21(3), 30-46.
  • [55] Cady, J.F. (1985). Marketing strategies in the information industry. (Ed.: Buzzell, R.D.). Marketing in the Electronic Age. Boston. MA: Harvard Business School Press.
  • [56] Lengnick-Hall, C.A. (1992). Innovation and competitive advantage: what we know and what we need to learn. Journal of Management, 18(2), 399-430.
  • [57] (2001). First-mover advantage stili counts for a lot in digital DTH. Broadcasting & Cables TV International, 9(19), 5.
  • [58] Briggeman, B.C.; Gunderson, M.A. & Detre, J.D. (2005). Protecting Your Turf: First Mover Advantages as a Barrier to Competitor Innovation. Proceedings İFAMA Conference 2005, Chicago, Illinois, USA, June 25-28.
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  • [60] Kotler, P. (1984). Marketing Management. 5th Ed. New Jersey: Prentice-Hall.
  • [61] Kotler, P. (1995). Marketing Management - Analysis, Planning, Implementation and Control. 7th Ed. New Jersey: Prentice-Hall.
  • [62] Shrader, R.C.; Oviatt, B.M. & McDougall, P.P. (2000). How new ventures exploit trade- offs among international risk factors: Lessons for the accelerated internationalization of the 21 st centııry. Academy of Management Journal, 43(6), 1227 - 1248.
  • [63] Bevan, A. (1974). The UK potato crisp industry 1960-72: a study of new entry competition. Journal of Industrial Economics, 22(4), 281-291.
  • [64] Flaherty, M.T. (1983). Market share, technology leadership, and competition in international semiconductor markets. (Ed.: Rosenbloom, R.S.). Research on Technological Innovation Management and Policy I. Greemvich, CT: JAI Press.
  • [65] Millar, A., Gartner, W.B. & Wilson, R. (1989). Order entry, market share and competitive advantage. A study of their relationship in new corporate ventures. Journal of Business Venturing, 4(3), 197-209.
  • [66] Sheth, J. & Sisodia, R. (2002). The Rule of Three: Surviving and Thriving in Competitive Markets. İst Ed. New York: Free Press.
Year 2007, , 159 - 166, 10.06.2007
https://doi.org/10.14783/maruoneri.684352

Abstract

References

  • [1] Garten, J.E. (1997). Troubles ahead in emerging markets. Harvard Business Review, 75(3), 38-46.
  • [2] Aguilar, L.M. & Singer, M.A. (1996). Big Emerging Markets and U.S. Trade. Competitiveness Review, 6(1), 14-30.
  • [3] Nakata, C. & Sivakumar, K. (1997). Emerging market conditions and their impact on fırst mover advantages - an integrative review. International Market Review, 14(6), 461-485.
  • [4] Cavusgil, T. (1997). Measuring the potential of emerging markets: An indexing approach. Business Horizons, 40(1), 87-91.
  • [5] Sivakumar, K. (2002). Simultaneous determination of entry timing and involvement level: An optimization model for international marketing. International Marketing Review, 19(1), 21-38.
  • [6] Rivoli, P. & Salorio, E. (1996). Foreign direct investment and investment under uncertainty, Journal of International Business Studies, 27(2), 335-358.
  • [7] Mascarenhas, B. (1997). The order and size of entry into international markets. Journal of Business Venturing, 12(4), 287-299.
  • [8] Lambkin, M. (1988). Order of entry and performance in new market. Strategic Management Journal, 9, Summer, 127-140.
  • [9] Liebermann, M.B. & Montgomery, D.B. (1998). First- Mover (dis)Advantages: Retrospective and link with the resource-based view. Strategic Management Journal, 19(12), 1111-1125.
  • [10] Mitchell, W. (1991). Dual clocks: Entry order influences on incumbent and new-comer market share and survival: When specialized assets retain their value. Strategic Management Journal, 12(2), 85-100. 11
  • [11] Madhok, A. (1998). Cost, value and foreign market entry mode: The transaction and the firm. Strategic Management Journal, 18(1), 39-61.
  • [12] Mascarenhas, B. (1992). Order of entry and performance in international markets. Strategic Management Journal, 13(7), 499-510.
  • [13] Shaver, J.M.; Mitchell, W. & Yeung, B. (1997). The effect of own-firm and other fırm experience on foreign direct investment survival in the United States. Strategic Management Journal, 18(10), 811-824.
  • [14] Luo, Y. (1998). Timing of investment and international expansion performance in China. Journal of International Business Studies, 29 (2), 391-408.
  • [15] Luo, Y. & Peng, M.W. (1998). First mover advantages in investing in transitional economies. Thunderbird International Business Review, 40(2), 141-163.
  • [16] Pan, Y. & Chi, P.S.K. (1999). Financial performance and survival of multinational corporations in China. Strategic Management Journal, 20(4), 359-374.
  • [17] Pan, Y.; Li, S. & Tse, D.K. (1999). The impact of order and mode of market entry on profîtability and market share. Journal of International Business Studies, 30(1), 81- 104.
  • [18] Isobe, T.; Makino S. & Montgomery, D. (2000). Resource commitment, entry timing, and market performance of foreign direct investments in emerging economies: The case of Japanese international joint ventures in China. Academy of Management Journal, 43(3), 468-484.
  • [19] Bilgin, Z. (2001). Perspectives for starting emerging markets of transition economies (SEMs). Paper presented at the International Global Business and Technology Association Conference International Conference, İstanbul.
  • [20] Rindova, V.P. & Kotha, S. (1999). Building reputational stocks through strategic action flows on the Internet: Lessons from Amazon.com and its competitors in Internet retailing. Presented at the Academy of Management, Chicago.
  • [21] Caves, R.E. & Porter, M.E. (1977). From entry barriers to mobility barriers: Conjectural decisions and contrived deterrence to new competition. Quarterly Journal of Economies, 91(2), 241-262.
  • [22] Robinson, W. & C., Fornell. (1985). Sources of market pioneer advantages in consumer goods industries. Journal of Marketing Research, 22, August, 305-317.
  • [23] Kardeş, F.R. & Kalyanaram G. (1992). Order-of-Entry effects on consumer memory and judgment: An information integration perspective. Journal of Marketing Research, 29, August, 343-357.
  • [24] Boulding, W. & Christen, M. (2000). Sustainable pioneering advantage? Profît implications of the entry timing decision. Working Paper, İNSEAD Management School.
  • [25] Gupta, A.K. & Govindarajan, V. (2001). Converting global presence into global competitive advantage. The Academy of Management Executive, 15(2), 45-59.
  • [26] Cottrell, T. & Sick, G. (2001). First mover (dis)advantage and real options. Journal of Applied Corporate Finance, 14(2), 41-51.
  • [27] Liebermann, M.B. & Montgomery, D.B. (1991). To pioneer or follow? Strategy of entry order. (Ed.: Glass, H.). Handbook of Business Strategy. 2nd Ed. New York: Warren, Gorham, and Lamont.
  • [28] Mannes, G. First-mover advantage: what's it really worth? (ttp://www.thestreet.com/tech/intemet/682198.html). [27.06.2003].
  • [29] Freedman, D.H. (2001). Last Guys Finish First. So, you dragged your heels on e-business? Congratulations — you picked the winning strategy. E-Company Now, 2, 93-97.
  • [30] Robinson, W.T. & Min, S. (2002). Is the first to market the fırst to fail? Empirical evidence for industrial goods businesses. Journal of Marketing Research, 39(1), 120- 128.
  • [31] Kalyanaram, G. & Urban, G.L. (1992). Dynamic effects of the order of entry on market share, trial penetration and repeat purchases for frequently purchased consumer goods. Marketing Science, 11 (3), 235-250.
  • [32] Lilien, G.L. & Eunsang, Y. (1990). The timing of new entry: An exploratory study of new industrial products. Management Science, 36(5), 568-585.
  • [33] Robinson, W. (1988) Sources of market pioneer advantages: the case of industrial goods industries. Journal of Marketing Research, 25, February, 87-94.
  • [34] Urban, G.L.; Carter, T.; Gaskin, S. & Mucha, Z. (1986). Market share rewards to pioneering brands: an empirical analysis and strategic implications. Management Science, 32(6), 645-659.
  • [35] Telis, G.J. & Golder, P.N. (1996). First to market, fırst to fail? Real causes of enduring market leadership. Sloan Management Review, 37(2), 65-76.
  • [36] Hax, A.C. (1989). Building the firm of the future. Sloan Management Review, 30(3), 75-82.
  • [37] Carlson, T. (1994). The race is on. - need for speed in getting a new product to market. Brandweek, 35(19), 22- 27.
  • [38] Neddle, D. The myth of the fırst mover advantage. (http://siliconvalley.internet.com/news/article.php/3541_3 33311). [27.06.2003],
  • [39] McKenzie, R.B. (2001). The Myth of the First-Mover Advantage. (http://www.merage.uci.edu/~mckenzie/Myth.pdf). [11.06.2006],
  • [40] Mossberg, W. (1997). Personal Technology. New York Times, February 26.
  • [41] Ramo, J.C. (1996). Winner takes ali. Time, September 16, 57-64.
  • [42] Golder, P.N. & Tellis, G.J. (1993). Pioneer advantage: Marketing logic or marketing legend. Journal of Marketing Research, 30 (2). 158-170.
  • [43] Werle, M. Erfolgsfaktor Zeit im E-Commerce: Bedeutung, For- und Nachteile der Pionier- und Folgerstrategie. (http://www.uni-siegen.de/dept/fb05/market/lfm/veranst/ssOl/Seminar EC.htm). [01.08.2002].
  • [44] Zhang, S. & Markman, A.B. (1998). Overcoming the early entrant advantage: The role of alignable and nonalignable differences. Journal of Marketing Research, 35(4), 413- 426.
  • [45] Schnaars, S.P. (1994). Managing imitation strategies: how later entrants seize market share from pioneers. New York: Free Press.
  • [46] Rigdon, J.I. The second-mover advantage. (http://www.redherring.com/index.asp?layout=story&chan nel=70000007&doc_id=850013685). [24.04.2003].
  • [47] Bonardi, J.P. & Durand, R. (2003). Managing network effects in high tech markets. Academy of Management Executive, 17(4), 40-53.
  • [48] Witzel, M. First-mover advantage — Being fırst into a market brings retvards, but also risks. (http://www.business-minds.com/article.asp7iteiTF312). [24.04.2002] ,
  • [49] Gilbert, J.T. (1993). Faster! Newer! is not a strategy. Advanced Management Journal, 58(4), 5-9.
  • [50] Korea Top Test Market for Global Products (2003). Korea Herald, January 25th.
  • [51] Anders, G. He who moves fırst fınishes last. Retrieved on. (http://www.fastcompany.com/online/38/cdu.html) [27.06.2003],
  • [52] Cusumano, M.A.; Mylonadis, Y. & Rosenbloom, R.S. (1992). Strategic maneuvering and mass-market dynamics: the triumph of VJTS över Beta. Business History Review, 66(1), 51-95.
  • [53] Simmonds, K. (1999). International marketing-avoiding the seven deadly traps. Journal of International Marketing, 7(2), 51-67.
  • [54] Bolton, K.M. (1993). imitation versus innovation: lessons to be learned from the Japanese. Organization Dynamics, 21(3), 30-46.
  • [55] Cady, J.F. (1985). Marketing strategies in the information industry. (Ed.: Buzzell, R.D.). Marketing in the Electronic Age. Boston. MA: Harvard Business School Press.
  • [56] Lengnick-Hall, C.A. (1992). Innovation and competitive advantage: what we know and what we need to learn. Journal of Management, 18(2), 399-430.
  • [57] (2001). First-mover advantage stili counts for a lot in digital DTH. Broadcasting & Cables TV International, 9(19), 5.
  • [58] Briggeman, B.C.; Gunderson, M.A. & Detre, J.D. (2005). Protecting Your Turf: First Mover Advantages as a Barrier to Competitor Innovation. Proceedings İFAMA Conference 2005, Chicago, Illinois, USA, June 25-28.
  • [59] Terpstra, V. & Sarathy, R. (1994). International Marketing. 6th Ed. Fort Worth, TX: The Dryden Press.
  • [60] Kotler, P. (1984). Marketing Management. 5th Ed. New Jersey: Prentice-Hall.
  • [61] Kotler, P. (1995). Marketing Management - Analysis, Planning, Implementation and Control. 7th Ed. New Jersey: Prentice-Hall.
  • [62] Shrader, R.C.; Oviatt, B.M. & McDougall, P.P. (2000). How new ventures exploit trade- offs among international risk factors: Lessons for the accelerated internationalization of the 21 st centııry. Academy of Management Journal, 43(6), 1227 - 1248.
  • [63] Bevan, A. (1974). The UK potato crisp industry 1960-72: a study of new entry competition. Journal of Industrial Economics, 22(4), 281-291.
  • [64] Flaherty, M.T. (1983). Market share, technology leadership, and competition in international semiconductor markets. (Ed.: Rosenbloom, R.S.). Research on Technological Innovation Management and Policy I. Greemvich, CT: JAI Press.
  • [65] Millar, A., Gartner, W.B. & Wilson, R. (1989). Order entry, market share and competitive advantage. A study of their relationship in new corporate ventures. Journal of Business Venturing, 4(3), 197-209.
  • [66] Sheth, J. & Sisodia, R. (2002). The Rule of Three: Surviving and Thriving in Competitive Markets. İst Ed. New York: Free Press.
There are 66 citations in total.

Details

Primary Language English
Journal Section Eski Sayılar
Authors

Dilek Zamantılı Nayır This is me

Publication Date June 10, 2007
Published in Issue Year 2007

Cite

APA Zamantılı Nayır, D. (2007). ADVANTAGES OF FOLLOWERS IN EMERGING MARKETS. Öneri Dergisi, 7(28), 159-166. https://doi.org/10.14783/maruoneri.684352

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