TECHNOLOGY MARKET DYNAMICS: FIFTH GENERATION NETWORKS AND HUAWEI MARKET LEADERSHIP

The extant research has established that there is a pioneering market share advantage when the product category is successful, and under certain other conditions.  This finding has been found across many product categories. 

Applying this database of empirical knowledge, the paper addresses the following two important research questions.  These research questions have substantial impact on scholarship and practice.    

1.      How does the market share advantage to early entrants impact the Fifth Generation (5G) network technology market structure?

2.      How is financial strength of the firm related to market entry of its brand?

We chose the 5G market because 5G is transforming every-day consumer experience in many ways, and altering the landscape of our society, commerce and economy, and polity in substantial ways.  5G is making Artificial Intelligence (AI) applications seamless. 5G and AI, together, are revolutionizing the Internet of Things (IoT) (Schulte and Lee 2019, Lee and Low 2018, Liu and Tsyvinsky 2018, Liu and Liu 2016, and Narula 2016).  In this context, we assess the position of the market pioneer Huawei and other players.

The paper is organized thus.  In the next section, we provide a very brief overview of the relevant literature.  Then we present the empirical models that have been employed with many datasets and product categories to estimate the effect of order of entry on market share, and the effect of a firm’s financial strength on its ability to accelerate its entry into the market.  The following section discusses the generalized formula quantifying the order of entry effect, and its applications to 5G market.  The we present a brief discussion of the effect of financial strength of a firm on its market entry strategy, and its implications for the 5G market.  We finally close the paper with a brief discussion of managerial implications, limitations and opportunities for future research.

Please read here in the Journal of Emerging Trends in Marketing and Management (2019), Volume 1, No. 1, pp 43-51:

Fifth Generation Networks and Huawei Market Leadership (pages 43-51)