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Positioning strategies in the case of oligopolistic competition: The case of telecommunications industry in Senegal

  • Babacar Ndiaye

    (LARSES - Laboratoire d'Etude et de Recherche en Sciences Economiques et Sociales - Université de Ziguinchor)

  • Cheikh Thiaw


    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS - UNS - Université Nice Sophia Antipolis)

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    Innovation is the major instigator in competitive industry. The competition for innovation is traditionally analyzed within the framework of deterministic and stochastic models (Reinganum, 1989). Boone (2001), Fethke and Birch (1982) have respectively analyzed the standard models of competitive strategies in a duopoly and oligopoly industry. By focusing our analysis on deterministic models that is, the models without technological uncertainty, this paper attempts to interpret the model of Boone (2001) in order to determine the choice of positioning in a context of cumulative innovation. Thus, taking into account the case of the telecommunications' sector in Senegal, we try to understand the motivations of the incumbent firm (called first mover) to implement cumulative innovation in order to maintain its position in spite of the investments of entering firms (called follower).

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    Paper provided by HAL in its series Post-Print with number halshs-00864556.

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    Date of creation: 18 Aug 2011
    Date of revision:
    Publication status: Published in African Journal of Business Management (Academic Journals), 2011, 5 (16), pp.6651-6656. <10.5897/AJBM10.1167>
    Handle: RePEc:hal:journl:halshs-00864556
    DOI: 10.5897/AJBM10.1167
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    1. repec:oup:qjecon:v:94:y:1980:i:2:p:429-36 is not listed on IDEAS
    2. Richard A. Jensen, 2001. "Strategic Intrafirm Innovation Adoption and Diffusion," Southern Economic Journal, Southern Economic Association, vol. 68(1), pages 120-132, July.
    3. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-93, June.
    4. Thierry Verdier & J. David Pérez-Castrillo, 1991. "La structure industrielle dans une course au brevet avec coûts fixes et coûts variables," Revue Économique, Programme National Persée, vol. 42(6), pages 1111-1140.
    5. Boone, Jan, 2001. "Intensity of competition and the incentive to innovate," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 705-726, April.
    6. Kamien, Morton I & Schwartz, Nancy L, 1974. "Patent Life and R & D Rivalry," American Economic Review, American Economic Association, vol. 64(1), pages 183-87, March.
    7. Gary C. Fethke & John J. Birch, 1982. "Rivalry and the Timing of Innovation," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 272-279, Spring.
    8. repec:oup:qjecon:v:90:y:1976:i:2:p:245-60 is not listed on IDEAS
    9. Reinganum, Jennifer F., 1989. "The timing of innovation: Research, development, and diffusion," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 14, pages 849-908 Elsevier.
    10. repec:oup:qjecon:v:98:y:1983:i:4:p:681-94 is not listed on IDEAS
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