Strategy Dynamics Briefing 55: Rivalry through successive product generations

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Many industries feature repeated replacement of one generation of product or service with another. In the cellphone industry, for example, the early analogue handsets and networks achieved some penetration of the potential market, but were then replaced by the early digital services, which in turn were replaced by today’s 3G offerings. It is helpful to understand how rivalry is affected by this phenomenon.

For every generation of product or service after the first, the existing population of customers or users ...

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Strategy Dynamics Briefing 52: When type-1 and type-2 rivalry operate together

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It is rare for any type of rivalry to operate entirely alone…

Examining the three main types of rivarly:

  • Type-1 rivalry to capture new potential customers could feasibly happen if the product or service is entirely new, and if any customer, once committed, would find it hard to switch. The market for enterprise-resource-planning systems (ERP) comes close to this ideal – once a substantial business has committed to using SAP it would be complex and costly to throw that out and use something else.
  • Type-2 could only ...
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