Protecting Your Turf: First-mover Advantages as a Barrier to Competitor Innovation

Product innovation for a juice company and its associated first-mover advantages are analyzed. Stochastic simulation is used to model market size, price, competitive intensity, and the likelihood of competitor entry. Results of moving first allow the firm to capture market share, realize first-mover advantages in excess of $2 million, and deter competitor innovation. In addition, the proposed model is flexible enough to be applied in other industries.


Issue Date:
2006
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/8206
Published in:
International Food and Agribusiness Management Review, Volume 09, Issue 1
Page range:
53-70
Total Pages:
18




 Record created 2017-04-01, last modified 2018-01-22

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