Management Information Systems Commons^™

Competitive Retailer Strategies For New Market Research, Entry And Positioning Decisions, Xiaodong Yang, Gangshu (George) Cai, Ying-Ju Chen, Shu-Jung Sunny Yange

Information Systems and Analytics

This paper investigates strategies for new market research and positioning of stores or products by competing retailers in a duopoly setting. We examine the scenario where the two retailers are considering entry into an uncertain new market that is an extension of their existing markets. The retailers must make decisions on whether or not to first conduct research about the new market's location relative to their existing markets and its size before deciding on their own positioning in it. We first study a sequential-move leader–follower setup to highlight the choice of an “innovate-or-imitate” strategy. We find when the potential new …