Technology managment in the era of AI in Business

Technology management

1. The Evolution of Markets Innovation Adoption, Diffusion, Market Growth, New Product Entry, and Competitor Responses

2. Shankar, Carpenter, and Krishnamurthi (1999) examine the effect of the stage of the product life cycle in which a brand enters on its sales They estimate a dynamic brand sales model using 29 brands from six pharmaceutical markets and they find that the brand growth rate follows an inverted-V pattern. Growth-stage entrants grow faster than pioneers and mature-stage entrants. Competitor diffusion hurts the pioneer, has no effect on growth-stage entrants, and helps mature-stage entrants. Growth stage entrants enjoy greater response to perceived product quality than pioneers and mature-stage entrants. Pioneers enjoy higher advertising and sales force response than growth-stage entrants, which in turn, have higher response than mature-stage entrants. The research did not find a direct effect of order of entry or pioneering advantage. New Product Introduction Strategy

3. Using secondary data from the medical literature and business press, Banbury and Mitchell (1995) highlight the competitive importance of incremental product innovation in established industries. The findings suggest that effective incremental product development and rapid product introduction are critically important to business performance. Introducing incremental product innovations during its Using secondary data from the medical literature and business press, Banbury and Mitchell (1995) highlight the competitive importance of incremental product innovation in established industries. New Product Introduction Strategy

4. Introducing incremental product innovations during its tenure as an industry incumbent strongly influences a business’s market share and, indirectly, its survival in an established industry. Early adoption of innovations introduced by competitors has a smaller positive relationship with greater market share than introducing incremental product innovations. Greater market share in turn protected the firms from the impact of competitive entry and contributed to significantly lower likelihood that the business would shut down. Business survival is most influenced by its ability to support innovative products in the market, not simply by virtue of its introduction of technically innovative products. New Product Introduction Strategy

5. A new product entry into an existing market may create additional demand for the product and/or share the existing market by drawing buyers away from incumbent brands. New Product Introduction Strategy

6. Competitor response to new product entry plays an important role in determining the evolution of the market. Both normative and descriptive models have been developed for response to new product entry. A number of normative or game theoretic models of incumbent response have been developed. Through a seminal analytic model, Hauser and Shugan (1983) show that it is optimal for an incumbent to decrease advertising and distribution spending in a static market. In addition, if the consumers’ tastes are uniformly distributed, it is optimal to decrease prices, improve product quality, and reposition the brand in the direction of the incumbent’s strength. They also develop a normative model termed the ‘Defender’ to help the incumbent brand managers in their marketing decisions. Competitive Responses To New Product Entry

7. A descriptive statement gives an account of how the world is without saying whether that's good or bad. A normative statement  expresses an evaluation , saying that something is good or bad, better or worse, relative to some standard or alternative. Competitive Responses To New Product Entry

8. Kumar and Sudarshan (1988) use a decoupled response function in their model and show that the optimal defensive strategy for all incumbents is to decrease their prices, advertising, and distribution when tastes are uniformly distributed, the market is static, and advertising and distribution are decoupled. Gruca , Kumar, and Sudarshan (1992) show that the optimal response varies by the incumbent’s market dominance and that a dominant incumbent (one with a market share of 50% or more) should increase its spending, whereas a nondominant brand should reduce its spending. Competitive Responses To New Product Entry

9. Econometrics is a  branch of economics . It is the use of statistical and mathematical methods to describe the relation between economic forces such as capital (any of the tools, work, or other things needed to make something useful), interest rates (the price of borrowing money), and labor. Competitive Responses To New Product Entry

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