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Unpublished Paper
Entry and Competitive Dynamics in the Mobile Telecommunications Market
IPRIA Working Paper (2006)
  • Zi-lin Wong, University of Otago
  • Kwanghui Lim, Melbourne Business School
  • poh-kam Wong
Abstract

We propose an extension of the Gans-Stern (2003) framework that includes entry by existing firms. An incumbent firm possessing complementary assets and strong appropriability is in a formidable position (Teece, 1986). However, a de alio entrant can leverage complementary assets to enter along a new technological trajectory, and then develop appropriability. We illustrate how several mobile telecommunications firms (Ericsson, Nokia and Samsung) pursued this strategy to catch up with the market leader (Motorola). We also identify several shortcomings in Motorola’s approach: it was too inward-looking in developing technologies, but ironically not inward-looking enough in exploiting its most valuable patents.

Disciplines
Publication Date
2006
Citation Information
Zi-lin Wong, Kwanghui Lim, and Poh-kam Wong. 2006. "Entry and Competitive Dynamics in the Mobile Telecommunications Market" IPRIA Working Paper. http://www.ipria.org/publications/wp/2006/IPRIAWP11.2006.pdf