Product line strategies of new entrants in an established industry: evidence from the U.S. Bicycle industry

Deskripsi

A firm's product line breadth in a given market has both benefits and costs; these effects can be more clearly seen by examining not only the number of products a firm offers, but also the degree of complexity that the product line represents. The effects of breadth are particularly important for new entrants in a relatively mature industry and I examine the breadth-survival relation on new entrants in the bicycle industry in the period 1993-98. I find that firms offering a greater number of products, those with very simple and very complex product lines, and those whose product lines have a moderate degree of overlap with rivals have the highest survival rates.Printed Journal