Competition in markets and product survival
(A2020-62051)

AUTHORS

Fernando Campayo-Sánchez, University of Alicante; Francisco Mas-Ruiz, University of Alicante; JUAN LUIS NICOLAU, Virginia Tech University

KEYWORDS

Product survival; Managerial attention; Strategic groups

ABSTRACT

This study aims to examine the relationship between the rivalry of products of strategic groups of companies and the survival of the products of its member companies. The hypothesis assumes that the products of regulated companies originally expect the managerial attention of the products of companies of the group of low-cost producers; and this produces a greater product survival of the companies originally regulated. On the contrary, the products of low-cost companies and of companies with product differentiation expect to receive the managerial attention of other companies of their same strategic group; and this determines a greater survival of their products. Results show the relationship between the intra- and inter-group rivalry among the products and the survival of the products of the firms.