Product development strategies for established market pioneers, early followers, and late entrants

Abstract

At the time of entry, market pioneers are known for emphasizing major product development projects. After being in the market for many years, however, do market pioneers, early followers, and late entrants maintain different product development strategies? Data from 2273 established manufacturing businesses reveal that market pioneers have the highest probability of engaging in product development, which covers product R & D spending as well as new product sales. Even so, market pioneers and early followers tend to emphasize minor projects, such as product improvements and line extensions. Late entrants are less likely to engage in product development, but those that do tend to emphasize major development efforts. Copyright © 2002 John Wiley & Sons, Ltd.