Abstract

In this chapter, the analysis links competitive dynamics and product line extension literatures, and explores whether competitive responses to industry rivals in terms of product line extension are different when faced with different levels of competitive intensity over time. Although competitive dynamics may help understand the rationale underlying product portfolio adjustment, scholars from this stream of thought offer very limited arguments on the relationship between competition and the length of a firms’ product line. This chapter develops a theoretical framework which suggests that the competitive intensity-product line length relationship is not linear. It also illustrates insights into the mobile phone industry.Keywordscompetitive intensitymobile phone industryproduct line

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