Download or read book Product Differentiation and Multiproduct Strategies written by Marco Di Cintio and published by . This book was released on 2006 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the price-setting behavior of multiproduct firms in a differentiated product market. The structure considered is one where large companies offer either a set of close substitutes (market segmentation) or a set of distant substitutes (market interlacing). The modelling strategy of the paper is to allow for two different elasticities of substitution: the intra-company elasticity of substitution and the inter-company elasticity of substitution. The key feature of the model is the possibility for multiproduct companies to choose their optimal internal organizational structure, according to the relative size of these two parameters. In order to maximize profits, each company may either set prices centrally, or alternatively it may assign an independent product manager to run each division. In other words, product managers of the same company may behave either independently or cooperatively. While the model does not consider either the proliferation or the product-line selection decisions, it deals with multiproduct frms price decisions under oligopolistic competition making use of conjectural variations. Its main purpose has been to provide a micro-founded answer about the question of whether and when a system of independent product managers (decentralized decisions) is better than a mechanism with a centralized general direction. Coordination is always profitable under market segmentation; while under market interlacing, the strategy of relying on independent product managers is profitable when the standard monopolistic competition arises; it may also be profitable with oligopolistic (Bertrand) competition under some assumptions.

Download or read book Product Versus Process written by Lisandra Flach and published by . This book was released on 2017 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the effects of better access to foreign markets on innovation strategies of multi-product firms in industries with different scope for product differentiation. Industry-specific demand and cost linkages induce a distinction between the returns to innovation. In differentiated industries, cannibalization is lower and firms invest more in product innovation. In homogeneous industries, firms internalize intra-firm spillovers and invest more in process innovation. Using firm-level data and large exchange rate devaluations, we show that better access to foreign markets increases the incentive to innovate. However, we exploit differential effects across industries and show that the innovation strategies depend on the scope of differentiation.

Download or read book The Theory of Oligopoly with Multi Product Firms written by Koji Okuguchi and published by Springer Science & Business Media. This book was released on 2013-03-14 with total page 177 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this book a rigorous, systematic, mathematical analysis is presented for oligopoly with multi-product firms in static as well as dynamic frameworks in the light of recent developments in theories of games, oligopoly and industrial organization. The general results derived in this book on oligopoly with multi-product firms contain, as special cases, all previous results on oligopoly with single product as well as oligopoly with product differentiation and single product firms. A constructive nu- merical method is given for finding the Cournot-Nash equilibrium, which may be extremely valuable to those who are interested in numerical analysis of the effects of various industrial policies. A sequential adjustment process is also formulated for finding the equilibrium. Dynamic adjustment processes have two versions, one with a discrete time scale and the other with a continuous time scale. The stability of the equilibrium is thoroughly investigated utilizing powerful mathematical results from the stability and linear algebra literature. The methodology developed for analyzing stability proves to be useful for dynamic analysis of economic models.

Download or read book On Postponement Strategies for Product Families with Multiple Points of Differentiation written by Amit Garg and published by . This book was released on 1997 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: "Several researchers have studied the benefits of product and process design that calls for delaying the differentiation of products. Previous research has focused on products having only one point of differentiation. However, in reality most product families have several points of differentiation. In this paper, we develop two models to study products with more than one point of differentiation. In each model, we examine the benefits of delayed differentiation at each of these points, and derive the necessary conditions when one type of delayed differentiation is more beneficial than the other. Our analysis indicates that demand variabilities, correlations and the relative magnitudes of the lead times play an important role in determining which point of differentiation should be delayed."

Download or read book The Product Differentiation Marketing Strategy Defined The Benefits Of Companies Using A Product Differentiation Marketing Strategy In Foreign Markets And Internet Marketing Tactics That Can Help Brands written by Dr Harrison Sachs and published by . This book was released on 2020-03-02 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This essay sheds light on the benefits appertaining to utilizing a product differentiation marketing strategy in foreign markets and identifies internet marketing tactics that can help brands facilitate the successful implementation of the product differentiation strategy in foreign markets. "Product differentiation is a marketing strategy that businesses use to distinguish a product from similar offerings on the market. For small businesses, a product differentiation strategy may provide a lasting competitive advantage in a market dominated by larger companies. For instance, the the product differentiation strategy also allows business to compete in areas other than price" (Kelchner) which ultimately allows brands to create perceived value and charge premium prices for their products. Moreover, the implementation of a successful product differentiation strategy fosters "brand loyalty among customers. Furthermore, this marketing strategy may create the perception that there's no substitute available on the market. Although competitors may have similar products, a product differentiation strategy that focuses on the quality or design differences which other products do not have allows brands to attain a competitive advantage in the market, as customers view the product as unique" (Kelchner). The successful implementation of the product differentiation strategy allows brands to also cultivate brand equity, positive brand recognition, and brand growth. Moreover, brands can attain profit maximization when they are able to successfully distinguish themselves from their competitors and offer services and products that customers are willing to pay top dollar for based on perceived value and uniqueness. The utilization of the product differentiation strategy has allowed many companies to financially flourish, such as Apple and Microsoft. Internet marketing tactics, such as posting video content onto social media websites that flaunt the unique product lines and sending out email blasts that highlight the merits of the products, can be employed to help brands facilitate the successful implementation of the product differentiation strategy in foreign markets.

Download or read book Multiproduct Firms and Product Differentiation written by Juan A. Manez and published by . This book was released on 2001 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Department of Economics at the University of Warwick presents the full text of the research paper entitled "Multiproduct Firms and Product Differentiation: A Survey," by Juan A. Manez and Michael Waterson that was published in June 2001. The paper is in PDF format. The authors discuss the impact of horizontal and vertical product differentiation on market structure. Manez and Waterson discuss price elasticity and mark-ups.

Download or read book Multiproduct Firms Product Differentiation and Market Structure written by Silvia Baranzoni and published by . This book was released on 2000 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Economic Theory of Product Differentiation written by John Beath and published by Cambridge University Press. This book was released on 1991-02-22 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: There are few industries in modern market economies that do not manufacture differentiated products. This book provides a systematic explanation and analysis of the widespread prevalence of this important category of products. The authors concentrate on models in which product selection is endogenous. In the first four chapters they consider models that try to predict the level of product differentiation that would emerge in situations of market equilibrium. These market equilibria with differentiated products are characterised and then compared with social welfare optima. Particular attention is paid to the distinction between horizontal and vertical differentiation as well as to the related issues of product quality and durability. This book brings together the most important theoretical contributions to these topics in a succinct and coherent manner. One of its major strengths is the way in which it carefully sets out the basic intuition behind the formal results. It will be useful to advanced undergraduate and graduate students taking courses in industrial economics and microeconomic theory.

Download or read book Product Versus Process written by Lisandra Flach and published by . This book was released on 2015 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the effect of better access to foreign markets on innovation strategies of multi-product firms in industries with different scope for product differentiation. Industry-specific demand and cost linkages induce a distinction between the returns to innovation. In differentiated industries, cannibalization is lower and firms invest more in product innovation. In homogeneous industries, firms internalize intra-firm spillovers and invest more in process innovation. We test these predictions using Brazilian firm-level data. Following an exchange rate devaluation, firms have better access to foreign markets and exploit economies of scale in innovation. We evaluate the differential effects across industries and show that the type of innovation depends on the degree of product differentiation.

Download or read book Product Differentiation and Non price Competition written by Norman J. Ireland and published by Wiley-Blackwell. This book was released on 1987-01-01 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Product Differentiation and Operations Strategy for Price and Time Sensitive Markets written by Sachin Jayaswal and published by . This book was released on 2009 with total page 155 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this dissertation, we study the interplay between a firm's operations strategy, with regard to its capacity management, and its marketing decision of product differentiation. For this, we study a market comprising heterogeneous customers who differ in their preferences for time and price. Time sensitive customers are willing to pay a price premium for a shorter delivery time, while price sensitive customers are willing to accept a longer delivery time in return for a lower price. Firms exploit this heterogeneity in customers' preferences, and offer a menu of products/services that differ only in their guaranteed delivery times and prices. From demand perspective, when customers are allowed to self-select according to their preferences, different products act as substitutes, affecting each other's demand. Customized product for each segment, on the other hand, results in independent demand for each product. On the supply side, a firm may either share the same processing capacity to serve the two market segments, or may dicate capacity for each segment. Our objective is to understand the interaction between product substitution and the firm's operations strategy (dedicated versus shared capacity), and how they shape the optimal product differentiation strategy. To address the above issue, we first study this problem for a single monopolist firm, which offers two versions of the same basic product: (i) regular product at a lower price but with a longer delivery time, and (ii) express product at a higher price but with a shorter delivery time. Demand for each product arrives according to a Poisson process with a rate that depends both on its price and delivery time. In addition, if the products are substitutable, each product's demand is also influenced by the price and delivery time of the other product. Demands within each category are served on a first-come-first-serve basis. However, customers for express product are always given priority over the other category when they are served using shared resources. There is a standard delivery time for the regular product, and the firm's objective is to appropriately price the two products and select the express delivery time so as to maximize its profit rate. The firm simultaneously needs to decide its installed processing capacity so as to meet its promised delivery times with a high degree of reliability. While the problem in a dedicated capacity setting is solved analytically, the same becomes very challenging in a shared capacity setting, especially in the absence of an analytical characterization of the delivery time distribution of regular customers in a priority queue. We develop a solution algorithm, using matrix geometric method in a cutting plane framework, to solve the problem numerically in a shared capacity setting. Our study shows that in a highly capacitated system, if the firm decides to move from a dedicated to a shared capacity setting, it will need to offer more differentiated products, whether the products are substitutable or not. In contrast, when customers are allowed to self-select, such that independent products become substitutable, a more homogeneous pricing scheme results. However, the effect of substitution on optimal delivery time differentiation depends on the firm's capacity strategy and cost, as well as market characteristics. The optimal response to any change in capacity cost also depends on the firm's operations strategy. In a dedicated capacity scenario, the optimal response to an increase in capacity cost is always to offer more homogeneous prices and delivery times. In a shared capacity setting, it is again optimal to quote more homogeneous delivery times, but increase or decrease the price differentiation depending on whether the status-quo capacity cost is high or low, respectively. We demonstrate that the above results are corroborated by real-life practices, and provide a number of managerial implications in terms of dealing with issues like volatile fuel prices. We further extend our study to a competitive setting with two firms, each of which may either share its processing capacities for the two products, or may dedicate capacity for each product. The demand faced by each firm for a given product now also depends on the price and delivery time quoted for the same product by the other firm. We observe that the qualitative results of a monopolistic setting also extend to a competitive setting. Specifically, in a highly capacitated system, the equilibrium prices and delivery times are such that they result in more differentiated products when both the firms use shared capacities as compared to the scenario when both the firms use dedicated capacities. When the competing firms are asymmetric, they exploit their distinctive characteristics to differentiate their products. Further, the effects of these asymmetries also depend on the capacity strategy used by the competing firms. Our numerical results suggest that the firm with expensive capacity always offers more homogeneous delivery times. However, its decision on how to differentiate its prices depends on the capacity setting of the two firms as well as the actual level of their capacity costs. On the other hand, the firm with a larger market base always offers more differentiated prices as well as delivery times, irrespective of the capacity setting of the competing firms.

Download or read book Corporate Leverage and Product Differentiation Strategy written by Stefan Arping and published by . This book was released on 2015 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a model of the interplay between corporate leverage and product differentiation strategy. Leverage improves managerial discipline, but it can also raise customer concerns about a vendor's long-term viability. We argue that customer concerns about firm viability will be particularly pronounced when products are highly differentiated from competitors' products. In this context, optimal product differentiation strategies solve a trade-off between softening price competition and reducing customers' total cost of ownership. Our analysis is consistent with empirical evidence suggesting a negative correlation between corporate leverage and product uniqueness.

Download or read book Firms Strategic Decisions Theoretical and Empirical Findings written by Kazuhiro Ohnishi and published by Bentham Science Publishers. This book was released on 2016-05-05 with total page 301 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the second volume of the book series featuring empirical research conducted on business decision making policies of oligopolistic organizations. This volume brings together 11 chapters that cover economic and mathematical models to illustrate strategic decision making among different organizations. Topics covered in this volume include, the theory of firm behavior, the Bertrand model of an incumbent and a potential industrial entrant, strategic interactions in vertically related industries, financial losses of enterprises caused by breaks of information security systems and the association of certain funding choices with efficiency in small medium enterprises. Thus the volume encompasses a fresh collection of works on firm behavior and industrial economics.

Download or read book Estimating Market Power and Strategies written by Jeffrey M. Perloff and published by Cambridge University Press. This book was released on 2007-06-18 with total page 263 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents, compares, and develops various techniques for estimating market power - the ability to set price profitably above marginal cost - and strategies - the game-theoretic plans used by firms to compete with rivals. The authors start by examining static model approaches to estimating market power. They extend the analysis to dynamic models. Finally, they develop methods to estimate firms' strategies directly and examine how these strategies determine market power. A detailed technical appendix reviews the relevant information-theoretic and other econometric models that are used throughout. Questions and detailed answers for students and researchers are provided in the book for easy use.

Download or read book Multi Channel Strategies for Retail Financial Services written by Patrick Dahmen and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: Patrick Dahmen analyses the internal and external dimensions of multi-channel strategies and develops a management framework for their strategic design and operational implementation. Case studies illustrate the underlying managerial challenges.

Download or read book Handbook on Agriculture Biotechnology and Development written by Stuart J. Smyth and published by Edward Elgar Publishing. This book was released on 2014-03-28 with total page 881 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a compendium of knowledge, experience and insight on agriculture, biotechnology and development. Beginning with an account of GM crop adoptions and attitudes towards them, the book assesses numerous crucial processes, concluding with detai

Download or read book Differentiation Strategy written by Kevin W. Holt and published by Taylor & Francis. This book was released on 2022-06-01 with total page 189 pages. Available in PDF, EPUB and Kindle. Book excerpt: This comprehensive and richly illustrated book explains how to create a differentiation strategy—a strategy for being different in a way that causes customers to prefer your products and services to those of your competitors. Filled with frameworks, tools, and templates, this book will enable you to create a compelling answer to your customers’ most fundamental question: Why should I buy from you instead of your competitors? What makes you different? The first half of the book provides an in-depth analysis of the concepts and principles that underlie the practice of differentiation, including the meaning of competitive advantage, competitive strategy, and customer-perceived value. The second half of the book explains how to create a differentiation strategy by identifying the target of your strategy, using customer research and creative problem-solving to design a unique offering, devising a value proposition that emphasizes a key benefit and the reasons to believe you will deliver the benefit, and designing the activity system that will implement your differentiation strategy. Business leaders in companies large and small, business students, and leaders in government, higher education, and the non-profit sector will gain a deep understanding of all that goes into creating a successful, difficult-to-copy differentiation strategy.