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Protecting Your Turf: First-mover Advantages as a Barrier to Competitor Innovation

Author

Listed:
  • Briggeman, Brian C.
  • Gunderson, Michael A.
  • Detre, Joshua D.

Abstract

Product innovation for a juice company and its associated first-mover advantages are analyzed. Stochastic simulation is used to model market size, price, competitive intensity, and the likelihood of competitor entry. Results of moving first allow the firm to capture market share, realize first-mover advantages in excess of $2 million, and deter competitor innovation. In addition, the proposed model is flexible enough to be applied in other industries.

Suggested Citation

  • Briggeman, Brian C. & Gunderson, Michael A. & Detre, Joshua D., 2006. "Protecting Your Turf: First-mover Advantages as a Barrier to Competitor Innovation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 9(1), pages 1-18.
    • Handle: RePEc:ags:ifaamr:8206
    DOI: 10.22004/ag.econ.8206
    as

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    References listed on IDEAS

    as
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