Customer-specific synergies and market convergence

• 成果类型: Article
• 署名作者: Schmidt, Jens; Makadok, Richard; Keil, Thomas
• 署名单位: Aalto University; Purdue University System; Purdue University; University of Zurich
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2372
• 发表日期: 2016
• 页码: 870-895
• 关键词: customer-specific synergies; Competitive advantage; bundling strategy; market convergence; demand-based theory

摘要

We use an analytical model to study the effects of customer-specific synergies, i.e., synergies that arise when firms sell multiple products to the same customers. At the firm level, we show that the profitability of a customer-specific synergy depends upon cross-market correlation of customer preferences, differs when the synergy is cost-based versus differentiation-based, and can even be negative when the synergy is kept proprietary to a single firm. We also show that returns to imitating such a synergy may decline as it strengthens. At the industry level, we find that exploiting customer-specific synergies causes endogenous market convergence at a point that depends upon whether the synergy is cost-based or differentiation-based and whether it is imitated. Copyright (c) 2015 John Wiley & Sons, Ltd.