Competitive behavior in the European mobile telecommunications industry: Pioneers vs. followers

Authors:
Zulima Fernández;Belén Usero
Affiliations:
Universidad Carlos III de Madrid, C/Madrid, 126, 28903 Getafe, Madrid, Spain;Universidad Carlos III de Madrid, C/Madrid, 126, 28903 Getafe, Madrid, Spain
Venue:
Telecommunications Policy
Year:
2009

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Abstract

This paper studies the relationship between competitive strategy and improvement in the competitive position of pioneers and followers in the mobile telecommunications industry. The analysis uses a panel of data comprising all the actions of European firms operating in the digital mobile telecommunications industry with GSM 900 and/or DCS 1800 networks. The results show that competitors gain market share when they follow competitive strategies that are different from those of other firms. The paper also finds that price reduction actions represent the best approach for followers, while differentiation actions are the most effective strategy for pioneers.