IDEAS home Printed from https://ideas.repec.org/a/ids/ijeima/v11y2010i1p109-135.html
   My bibliography  Save this article

Optimal marketing strategies for competing new ventures in a nascent industry

Author

Listed:
  • John N. Angelis
  • Moren Levesque

Abstract

Just as their established counterparts do, new ventures that pioneer nascent industries strive to increase profit by acquiring the sales of rival new ventures. However, these new ventures can also grow by attracting unrealised sales to their nascent industry. This article investigates the resulting trade-off in marketing expenditures when new ventures compete. Extensive numerical analysis on a multi-period framework suggests that an increase in a new venture's unit profit margin, effectiveness in gaining new sales or initial sales level, but a decrease in sales decay, may cause a positive spill-over for its rival. The numerical analysis also indicates when a new venture should target its rival's sales rather than focusing on growth through unrealised sales. This research thus provides guidance to new ventures searching for a marketing balance between growing their industry and competing on market share.

Suggested Citation

  • John N. Angelis & Moren Levesque, 2010. "Optimal marketing strategies for competing new ventures in a nascent industry," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 11(1), pages 109-135.
    • Handle: RePEc:ids:ijeima:v:11:y:2010:i:1:p:109-135
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=29771
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijeima:v:11:y:2010:i:1:p:109-135. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=7 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.