Outline the Timing Issues for Market Entry in E-Business.
Outline the timing issues for market entry in e-business.
There is no single method for timing market entry into any type of business, whether it is e-business or traditional business. Timing is more important in e-business since technologies change fast. Even a few weeks’ delay can cost the company dearly. The method used for timing market entry depends on factors such as the type of product, the particular market, the amount of competition and the budget available. The method used may also involve a single strategy or a mixture of different strategies. A successful product launch or market entry depends also on good timing and takes the characteristics of the target groups into account. In the case of timing as a strategic dimension, three basic possibilities can be differentiated:
● Be the first to launch as a 'first mover';
● Launch in parallel;
● Launch with delay
Pioneer
In an article published by Wright State University, Gurumurthy Kalyanaram, Director of Master’s Programs in the School of Management at the University of Texas, Dallas and Ragu Gurumurthy, principal at consulting firm Booz-Allen and Hamilton, suggest that the best general entry timing strategy is to be first into the market. Although expensive, they point out that this approach has been shown to give the product a significant advantage in market share. They suggest this strategy works best in industries where product life is short, such as the high-tech industry.
Late Arrival
Kalyanaram and Gurumurthy point out that entering a market late can have certain advantages as well, particularly if the pioneers have grown complacent or can no longer cater to a growing market, and also, if the late arrival has an innovative way to market their product. Late entry may also pay off if the product offers technological improvement over those already available, is significantly cheaper or offers better customer service. Markets that are already cluttered with products offer some opportunity for a
There is no single method for timing market entry into any type of business, whether it is e-business or traditional business. Timing is more important in e-business since technologies change fast. Even a few weeks’ delay can cost the company dearly. The method used for timing market entry depends on factors such as the type of product, the particular market, the amount of competition and the budget available. The method used may also involve a single strategy or a mixture of different strategies. A successful product launch or market entry depends also on good timing and takes the characteristics of the target groups into account. In the case of timing as a strategic dimension, three basic possibilities can be differentiated:
● Be the first to launch as a 'first mover';
● Launch in parallel;
● Launch with delay
Pioneer
In an article published by Wright State University, Gurumurthy Kalyanaram, Director of Master’s Programs in the School of Management at the University of Texas, Dallas and Ragu Gurumurthy, principal at consulting firm Booz-Allen and Hamilton, suggest that the best general entry timing strategy is to be first into the market. Although expensive, they point out that this approach has been shown to give the product a significant advantage in market share. They suggest this strategy works best in industries where product life is short, such as the high-tech industry.
Late Arrival
Kalyanaram and Gurumurthy point out that entering a market late can have certain advantages as well, particularly if the pioneers have grown complacent or can no longer cater to a growing market, and also, if the late arrival has an innovative way to market their product. Late entry may also pay off if the product offers technological improvement over those already available, is significantly cheaper or offers better customer service. Markets that are already cluttered with products offer some opportunity for a