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Competitive behavior in the European mobile telecommunications industry: Pioneers vs. followers

Author

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  • Fernández, Zulima
  • Usero, Belén

Abstract

This paper studies the relationship between competitive strategy and improvement in the competitive position of pioneers and followers in the mobile telecommunications industry. The analysis uses a panel of data comprising all the actions of European firms operating in the digital mobile telecommunications industry with GSM 900 and/or DCS 1800 networks. The results show that competitors gain market share when they follow competitive strategies that are different from those of other firms. The paper also finds that price reduction actions represent the best approach for followers, while differentiation actions are the most effective strategy for pioneers.

Suggested Citation

  • Fernández, Zulima & Usero, Belén, 2009. "Competitive behavior in the European mobile telecommunications industry: Pioneers vs. followers," Telecommunications Policy, Elsevier, vol. 33(7), pages 339-347, August.
  • Handle: RePEc:eee:telpol:v:33:y:2009:i:7:p:339-347
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    Cited by:

    1. Hüsig, Stefan, 2013. "The disruptive potential of PWLAN at the country-level: The cases of Germany, the UK, and the USA," Telecommunications Policy, Elsevier, vol. 37(11), pages 1060-1070.
    2. Muck, Johannes & Heimeshoff, Ulrich, 2012. "First mover advantages in mobile telecommunications: Evidence from OECD countries," DICE Discussion Papers 71, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    3. Mirjana Pejic Bach & Jovana Zoroja & Zeljko Jirous, 2013. "Croatian Telecommunication Market: Concentration Trends in the Period from 2003 to 2008," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 11(1), pages 131-142.
    4. Cricelli, Livio & Grimaldi, Michele & Levialdi Ghiron, Nathan, 2012. "The impact of regulating mobile termination rates and MNO–MVNO relationships on retail prices," Telecommunications Policy, Elsevier, vol. 36(1), pages 1-12.
    5. Ghezzi, Antonio & Cortimiglia, Marcelo Nogueira & Frank, Alejandro Germán, 2015. "Strategy and business model design in dynamic telecommunications industries: A study on Italian mobile network operators," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 346-354.
    6. Whalley, Jason & Curwen, Peter, 2012. "Incumbency and market share within European mobile telecommunication networks," Telecommunications Policy, Elsevier, vol. 36(3), pages 222-236.

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