Discussion Questions October 10, 2012 POSTECH Strategic Management of Information and Technology Laboratory (POSMIT: Dept. of Industrial & Management Engineering POSTECH

2 Discussion Questions ■Chapter 5. Timing of Entry 1.What are some of the advantages of entering a market early? Are there any advantages to entering a market late? –Entering a market early Opportunity to establish brand loyalty and technological leadership  Increasing installed base If the market is characterized by increasing returns, 1) moving up the learning curve before their competitors 2) building an installed base that keeps increasing due to the self-reinforcing nature of network externality processes –Entering a market late Cheaper, easier, and more certain Avoiding much of the development expense and risk borne by the early movers Fine-tuning the product to fit customer needs (which are now more certain) better

3 Discussion Questions ■Chapter 5. Timing of Entry 2.Can you think of an example of a successful a) first mover, b) early follower, and c) late entrant? Can you think of unsuccessful examples of each? –a) Successful first mover: Apple –a’) Unsuccessful first mover: Blackberry –b) Successful early follower: Samsung mobile –b’) Unsuccessful early follower: LG electronics –c) Successful late entrant: Microsoft Excel –c’) Unsuccessful late entrant: SKY