Strategic growth options
Article Abstract:
The strategic decision to perform an irreversible investment under imperfect competition and uncertainty is examined. This analysis contributes to the theoretical assessment of growth options through an explicit model of the strategic advantage achieved through an investment compared to competitors. Contradicting typical findings in real options research, this study shows the ambiguity of the influence of uncertainty on the relative value of the strategic growth options in the context of imperfect competition. In this imperfect-competition environment, profits are convex in demand because oligopolistic firms react to better market conditions by raising output as well as prices. This boosts expected cash flows with volatility since high marginal revenues at higher levels of demand more than offset for low revenues at low levels of demand.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1998
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Order of market entry, competitive strategy, and financial performance
Article Abstract:
Pioneering firms appear to have the advantage of gaining a majority of the market despite the subsequent entry of competitors. Customers are likely to favor the products of pioneering firms even if offered improved or cheaper alternatives. However, later entrants may also perform well if they can introduce superior and low-cost products through aggressive marketing. They may also benefit from the inability of pioneers to innovate or if they capture the customers' preferences.
Publication Name: Journal of Business Research
Subject: Business, general
ISSN: 0148-2963
Year: 1995
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Technology, competencies, and competitiveness: the case for reconfigurable and flexible strategies
Article Abstract:
Companies intending to become more flexible and are planning to adopt reconfigurable strategies to assure success in the 1990s and beyond need to consider concepts involving technology, competencies and competitiveness. Consideration of such concepts is highly important in terms of continued innovation, product redevelopment and service improvement. Such concepts are also vital towards achieving and maintaining advantages in an intense business environment.
Publication Name: Journal of Business Research
Subject: Business, general
ISSN: 0148-2963
Year: 1998
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