Sang‐Gun Lee, Ming Yu, Changgyu Yang and Changsoo Kim
The purpose of this paper is to propose a model that predicts information communication technology (ICT) adoption in saturated markets, to analyze the shifting behaviors of the…
Abstract
Purpose
The purpose of this paper is to propose a model that predicts information communication technology (ICT) adoption in saturated markets, to analyze the shifting behaviors of the subscribers and to present the results.
Design/methodology/approach
By developing an expanded Bass model, the authors analyzed post‐adopters' switching behaviors in the mobile phone market, using the officially verified time‐series data for the number of mobile phone adopters in South Korea.
Findings
The results show that: the expanded Bass diffusion model can delineate the stream of post‐adopter's switching behaviors in saturated ICT markets; based on innovation value p and imitation value q, the authors conclude that customer immigrations during market saturated period are mainly caused by innovation effect, which is closely related to launching innovative products; and fast mover still has its imitation effect, which is closely related to first mover advantage.
Originality/value
The paper provides novel insights for the frame of practical strategies. To survive in a saturated market, late movers should continuously develop new and innovative products. In addition, fast movers should also develop innovative products to prevent customer immigrations, and they also should utilize their first mover advantage more efficiently, even in matured market.
Details
Keywords
Changgyu Yang, Sang‐Gun Lee and Jaebeom Lee
Given the increasingly saturated information and communication technology (ICT) market and the intensification of competition among ICT firms, there is a need for a better…
Abstract
Purpose
Given the increasingly saturated information and communication technology (ICT) market and the intensification of competition among ICT firms, there is a need for a better understanding of entry barriers in the ICT market. The purpose of this paper is to examine the overall characteristics of these entry barriers and identify firms' strategies for achieving market dominance.
Design/methodology/approach
The authors examined the overall characteristics of these entry barriers and identified firms' strategies for achieving market dominance by tracking the actual patterns of firms' ICT market entry based on the Bass diffusion model.
Findings
The results indicate that the saturation of the ICT market reduced entry barriers, which strengthened the imitation effect. In addition, entry barriers were lower for ICT firms than for non‐ICT ones. Furthermore, entry barriers were higher for the manufacturing sector than for the service sector, indicating that the innovation effect was stronger for the manufacturing sector than for the service sector, whereas the opposite was true for the imitation effect.
Originality/value
These results suggest that those firms that are planning to enter or are already in the ICT market should develop better strategies for gaining a competitive advantage.