Entry Strategy and Long-Term Performance: Conceptualization and Empirical Examination

Abstract

A product entry strategy—the timing of entry, the magnitude of investment at entry, and the area of competitive emphasis at entry—affects long-term performance in the marketplace. The authors develop the Entry Strategy Performance Model (ESPM) and propose an encompassing framework for product entry strategy research. They empirically test a research model derived from the ESPM through an examination and replication in the microcomputer software market. The authors’ significant findings are that initial competitive positioning and media coverage (an atypical market characteristic) drive long-term performance.