2.4 Timing strategies

Question 1

Different timing strategies

Draw the tree

Answer 1

1. Country specific (point in time)
   - First mover strategy
   - Follower strategy
2. Several markets (temporal sequence
   - Waterfall strategy
   - Sprinkler/Parallell

Question 2

Timing strategies - Country specific

Answer 2

1. First Mover strategy PRO
   - Image leader
   - high customer loyalty
   - build up networks
   - establish standards
   contact with government
   –> create market entry barriers for followers
2. Follower PRO
   - learning from pioneers mistakes
   .- Often more stable situation
   - Better information
   –> Lower risk due to free rider effect but can also be lower frofit

Question 3

Timing strategies - Sequential timing strategies

Answer 3

1. Sequential strategy: one at a time with large time inbetween
   - lower need of resources
   - lower risk of failure (focusing)
   - Successive learning each time
   - Slowly take on difficult markets
   Ex. IKEA
2. Parallel Strategy: Several markets fast
   - Fast strong international presence
   - Better change of first mover advantages
   - Quick amortization
   - -> High profit potential but higher risk

Both can be combined (cluster of similar markets)