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We study how two distinct types of pre-entry experience – core technological experience and market-based complementary experience – affect post-entry performance in a new industry. We focus on the fit between capabilities generated through pre-entry experience and the preferences of heterogeneous consumer segments. Specifically, we suggest that firms with pre-entry experience in the focal technology will attract more valuable consumers, but as these consumers typically make adoption decisions early the firm must enter early to benefit. Conversely, firms with pre-entry experience in the focal market will attract a larger share of less valuable consumers regardless of entry timing. Our empirical analysis of the global 2G mobile telecommunications industry supports our theory and provides important insights for research on experience and entry dynamics in high-technology industries.

 

View all ESMT Working Papers in the ESMT Working Paper Series here. ESMT Working Papers are also available via SSRN, RePEc, EconStor, and the German National Library (DNB).

In 2008, the German coffee and consumer goods corporation Tchibo has launched Tchibo Ideas, an internet platform where customers can share their product/design ideas with the company. The tension in the case emerges from the uncertainty regarding Tchibo’s intentions with Tchibo Ideas. While some people perceive this move as a genuine attempt from the company to establish closer interactions with customers, some people see it simply as a marketing gimmick. The case describes the challenges and potential benefits that Tchibo Ideas is encountering to foster a discussion on the value of a co-creation strategy.

Diagnose der globalen Wettbewerbssituation traditioneller Technologieunternehmen anhand zahlreicher Praxisbeispiele Präsentation von Erfolgsstrategien, mit denen westliche Technologieunternehmen sich erfolgreich gegen die Konkurrenz aus Schwellenländern behaupten können. Konkrete Vorschläge für die Implementierung der entsprechenden Geschäftsstrategien Die Wettbewerbssituation traditioneller Technologieunternehmen ist im Umbruch. Neue Kundensegmente in den Schwellen- und Entwicklungsländern und neue Wettbewerber aus diesen Regionen verändern die Marktlandschaft rasant. Beides stellt die etablierten Anbieter vor neue Herausforderungen. Um sich zu behaupten, müssen Unternehmen wie Siemens, General Electric, Alstom, Mitsubishi, aber auch der Mittelstand, vertraute Denkweisen aufgeben; denn über die technisch perfekten Produkte hinaus verlangen die neuen Käufer einfache, preiswerte Alternativen. Parallel dazu lassen sich durch komplexe, nicht kopierbare Dienstleistungen wirksame Markteintrittsbarrieren schaffen. Das Buch behandelt die Chancen und Probleme neuer Strategien und zeigt, wie man sie optimal umsetzt, insbesondere bei Produkt- und Preisgestaltung, Mitarbeiter- und Organisationsentwicklung, Marken- und Vertriebsmanagement.

The case study describes the situation of mobile telephone network operators (MNOs) in 2010 facing a fast increase in the traffic over their third generation (3G) networks (UMTS) following the growing adoption of so-called “smart phones.” Smart phones had capabilities similar to a laptop computer in addition to the normal functions of a cellular telephone: they allowed users to access the Internet virtually anywhere the 3G networks were deployed. Subscribers could thus download music, videos, application software (apps), and upload large files. There were growing concerns among MNOs that some content distributors, and especially Apple with its iTunes and App Store was capturing a large share of the customer value, while not carrying the huge cost of the network. Was there any way for them to regain a share of the content distribution?

The case study describes the situation of mobile telephone network operators (MNOs) in 2010 facing a fast increase in the traffic over their third generation (3G) networks (UMTS) following the growing adoption of so-called “smart phones.” Smart phones had capabilities similar to a laptop computer in addition to the normal functions of a cellular telephone: they allowed users to access the Internet virtually anywhere the 3G networks were deployed. Subscribers could thus download music, videos, application software (apps), and upload large files. There were growing concerns among MNOs that some content distributors, and especially Apple with its iTunes and App Store was capturing a large share of the customer value, while not carrying the huge cost of the network. Was there any way for them to regain a share of the content distribution?

The case describes a critical external incident that will have fundamental consequences for a small but very successful family business: In 2010, Konnopke’s Imbiss was considered to be one of the, if not the, most famous snack bars in Berlin. This family-owned business was especially famous for the legendary “currywurst,” a Berlin invention that consists of a sausage fried in hot oil and served with ketchup, chili sauce, curry powder, and French fries. The main branch of Konnopke’s Imbiss was located in the Berlin district of Prenzlauer Berg, which was considered to be one of the “coolest” districts of Berlin. Konnopke’s had become a Berlin fast food icon, winning critical acclaim in almost all major Berlin travel guides. But in 2010, the snack bar no longer seemed to fit to its environment, which had changed from a working class district to a posh neighborhood mainly consisting of young freelancers and tourist.

The case describes how an external event (construction work) will have fundamental consequences for a small but very successful family business. This critical incident forces the owner family to rethink its business.