Why Dominant Companies Are Vulnerable

Item Type Journal paper
Abstract

Recent research suggests that, as consumers feel that their choices are restricted, many respond by turning away from the market leader.

It is widely assumed that in many technology markets, dominant players have a powerful advantage and often are able to leverage that edge over time. But this is not necessarily true. Over the past decade, popular social networking sites including Friendster, MySpace and Bebo initially picked up a large number of users only to lose ground to new competitors and fade into the background.

Facebook, by contrast, has succeeded at dramatically expanding its position in the global market, even as it has worked to manage an increasing number of dissatisfied users. Similar patterns of emergence, growth and dominance, followed by consumer disenchantment or ambivalence and a loss of brand equity have affected well-known technology companies such as Microsoft and AOL. Why do companies move from market strength to vulnerability?

Authors Murray, Kyle & Häubl, Gerald
Journal or Publication Title Sloan Management Review
Language English
Subjects business studies
HSG Classification contribution to scientific community
Refereed Yes
Date 20 February 2012
Publisher Massachusetts Institute of Technology
Place of Publication Cambridge, Mass.
Volume 53
Number 2
Page Range 12-14
Number of Pages 3
ISSN 1532-9194
ISSN-Digital 1532-8937
Depositing User Prof. Dr. Emanuel de Bellis
Date Deposited 20 Feb 2013 20:14
Last Modified 23 Aug 2016 11:15
URI: https://www.alexandria.unisg.ch/publications/220723

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Citation

Murray, Kyle & Häubl, Gerald (2012) Why Dominant Companies Are Vulnerable. Sloan Management Review, 53 (2). 12-14. ISSN 1532-9194

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https://www.alexandria.unisg.ch/id/eprint/220723
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