• Asia pacific journal of information systems
• /
• v.30 no.2
• /
• pp.328-352
• /
• 2020

If a firm announces an investment in IT security, how the market value of its competitors reacts to the announcement? We try to shed light on this question through an event study design. To test the relationship, we collected 143 announcements on cybersecurity investment and measured the subsequent impact on 533 competitors' abnormal returns, spanning from 2000 to 2019. Our estimation results present that, on average, the announcements have no observable impact on the market value of announcing firms and competitors as well, which is consistent with findings of a prior study. Interestingly, however, the impact becomes evident when we classify our samples by industries (Finance vs. non-Finance or ICT vs. non-ICT) and firm size (Big vs. Small). We interpret our empirical findings through the lenses of contagion effect and competition effect between announcing firms and their competitors. Key finding of our study is that, for financial service firms, the effect resulting from the announcement on cybersecurity investment transfers to competitors in the same direction (i.e., contagion effect).

• Korean System Dynamics Review
• /
• v.2 no.2
• /
• pp.85-96
• /
• 2001

In the recent Internet environment, there are different competition patterns among competitors as it was before. As we see real world example such as Covisint in automobile industry and Exostar in aerospace industry, collaboration among competitors now takes place and industry-wide B2B marketplaces come into existence. Hence, we suggest the extended system dynamics simulation model based on Kim(2002)’s collaboration profit models in order to explain competitors’ collaboration in the e-business environment. After all, we investigate the necessity of collaboration between competitors, and show the presence of the optimal investment decision making to collaborate. We also show that the effect of collaboration is changed as varying the industry characteristics such as standardization and volatility.

• Journal of the Korean Society of Clothing and Textiles
• /
• v.26 no.9
• /
• pp.1354-1365
• /
• 2002

With the appearance of many new types of fashion stores in Korea, competitions among fashion store types art fiercer than ever before. As consumers alternatives in fashion store selection increase, they select different store types to purchase different product types. Therefore, the probability of patronage mix behavior according to product type increases. Understanding consumers patronage mix behavior, finding out the determinant attributes of fashion stores for each product type, and analyzing competitive structures among fashion stores are important to retailers and marketers for building a successful merchandising and marketing strategies. An empirical study was conducted to analyze the competitive structure among the store types by consumers' patronage mix behavior. A questionnaire was developed and data were collected from 464 adult women living in Seoul area in Korea. Factor analysis, paired t-test, ANOVL Duncan test, and discriminant analysis were employed to analyze the data. Data regarding patronage mix behavior by product type proved that certain store types had ‘natural dominance’ in a particular product type as Hirschman(l978) pointed out. Also, a new analytic method of the competitive structures among fashion store types was suggested in the study, by which a specific store type retailer can analyze his/her own customers' patronage mix behavior by product type. The analysis will enable retailers to distinguish which of their competitors are substitutive, selling same product types, and which are complementary, selling different product types. Retailers have to concentrate on the strategies for the substitutive competitors rather than complementary competitors because their marketing abilities and resources are limited.

• Asia pacific journal of information systems
• /
• v.6 no.1
• /
• pp.5-20
• /
• 1996

Today's firms exist and run business in an uncertain and rapidly changing environment in terms of industry, market, technology, economic conditions, and culture. To be competitive, at least to survive, firms must cope with and manage uncertainty effectively. In other words, firms should be equipped with powerful weapons to capture competitive advantage over their competitors. There are several ways for a firm to capture competitive edge over its competitors such as cost leadership, quality of the products and services, manpower, higher productivity, and technology. Among these, technology, especially information technology, could be the most effective weapon for competitive advantages since it is possible to monitor competitors' movement as well as to provide appropriate information with both planning and control phases through an information system. In this paper, a competitive weapon in action, a Process Control System which is developed by and installed at a U.S petroleum company would the described.

• International Journal of Advanced Culture Technology
• /
• v.10 no.1
• /
• pp.116-121
• /
• 2022

In the environment in which business is conducted, all companies will most likely have competitors, but of equal importance to the relationship between a company and its competitors is the existence of other entities that can influence the market at any time. This entity could be an emerging company that develops a new methodology rendering current approaches obsolete, or it could be a diplomatic circumstance with another country. It is critical to develop corporate strategies and economic policies to consider the possibility that such third party effects may continue to occur in the future. It is essential to move away from focusing only on bilateral relationships, and to thoroughly examine the third one and prepare countermeasures. This contribution is expected to be expanded into "The Third Party Economics" that explores considerations that have remained outside of contemporary discussions. The author proposes that all economic agents should deeply recognize not only competitors but also the existence of a third party as another axis.

• Science of Emotion and Sensibility
• /
• v.20 no.3
• /
• pp.119-130
• /
• 2017

The purpose of the study is discovering the effects of virtual competitors on user in AR (Augment Reality) home training system. Specifically, the current research examined their effects on immersion, perceived competition, and leaning motivation. The paper tested three unexplored relationship. First, introducing virtual competitors in home training system will enhance user's immersion. Second, presenting virtual competitors in home training system will increase user's perceived competition. Third, virtual competitors in home training system will raise user's learning motivation. For empirical analysis, we developed home training system, which could check and give feedback automatically, based on user's posture. Using this AR home training system, the study empirically shows how and why virtual competitors affect users. The results give implications not only on service design; but also on the idea that virtual other could affect user's behavior.

• East Asian Journal of Business Economics (EAJBE)
• /
• v.6 no.3
• /
• pp.16-23
• /
• 2018

Purpose - 2013 to 2014 was a transitional situation in which China's Smartphone industry was fluctuating. So in this paper, we will look at the strategies and achievements of Xiaomi, a company that has emerged in this situation and topped the market share. In particular, the purpose of this paper is to analyze why Xiaomi, which is considered a copycat, was able to succeed in the smartphone market four years after entering the market and analyze its strategy. Research design and methodology - Various secondary data are to be used for this study. Using various newspaper articles as well as corporate reports, the company analyzes the transitional situation from 2013 to 2014 and the competitors together. Through these analyses, Xiaomi's strengths are selected objectively and analyzed to identify the factors that made Xiaomi successful. Results - After China's transitional shift in 2014, Xiaomi brought about a 152.3 percent share change over the previous year. In addition, it surpassed Samsung Electronics, which has been the industry's No. 1 player, in 2014, and achieved the No. 1 ranking with a 16 percent share. Xiaomi Mi4's phone had a strong point of maintaining low price while being loaded with high performance. Conclusions - Xiaomi's success is because its price and performance was excellent. Xiaomi's Mi4's specifications were not far behind its competitors', but it was very cheap compared to its competitors' prices. They also valued software and used talent-oriented human resource strategies. Plus, it created the 'Mifan' culture successfully and benchmarked the strengths of its competitors smartly.

• The International Journal of Costume Culture
• /
• v.12 no.2
• /
• pp.129-140
• /
• 2009

In this study, the effect of innovativeness of external networks on the corporate innovativeness and innovation performance were explored based on web survey data collected from 230 manufacturing companies. Specifically, according to the manufacturers' business categories divided by the technology level, three groups such as advance technology (electronic/IT), mid- to high technology (automobile/machine), and low technology (textile/clothing) companies were investigated to find out which external network influences corporate innovativeness and innovation performance. In the result, textile/clothing companies were not different in company size, history, and innovation effort from advanced technology and mid- to high technology companies. Collectively, the innovativeness of external networks affected corporate innovativeness and innovation performance. In the result by a business category, innovativeness and innovation performance of textile/clothing companies were affected by the innovativeness of competitors, whereas automobile/machine companies in the mid- to high technology group were affected by suppliers. In addition, advanced technology (electronics/IT) were affected by buyers and competitors. These differences suggest that the way to use vertical networks toward upstream (e.g., suppliers) and downstream (e. g., buyers) as well as horizontal networks toward competitors can be different by the business category of manufacturers. The result would provide implications for the academia and the industry.

• Proceedings of the Korean Institute of Building Construction Conference
• /
• 2007.11a
• /
• pp.109-113
• /
• 2007

This paper introduces a system, Simulation based Stochastic Markup Estimation System (S2ME), for estimating optimum markup for a project. The system was designed and implemented to better represent the real world system involved in construction bidding. The findings obtained from the analysis of existing assumptions used in the previous quantitative markup estimation methods were incorporated to improve the accuracy and predictability of the S2ME. The existing methods has four categories of assumption as follows; (1) The number of competitors and who is the competitors are known, (2) A typical competitor, who is fictitious, is assumed for easy computation, (3) the ratio of bid price against cost estimate (B/C) is assumed to follow normal distribution, (4) The deterministic output obtained from the probabilistic equation of existing models is assumed to be acceptable. However, these assumptions compromise the accuracy of prediction. In practice, the bidding patterns of the bidders are randomized in competitive bidding. To complement the lack of accuracy contributed by these assumptions, bidding project was randomly selected from the pool of bidding database in the simulation experiment. The probability to win the bid in the competitive bidding was computed using the profile of the competitors appeared in the selected bidding project record. The expected profit and probability to win the bid was calculated by selecting a bidding record randomly in an iteration of the simulation experiment under the assumption that the bidding pattern retained in historical bidding DB manifest revival. The existing computation, which is handled by means of deterministic procedure, were converted into stochastic model using simulation modeling and analysis technique as follows; (1) estimating the probability distribution functions of competitors' B/C which were obtained from historical bidding DB, (2) analyzing the sensitivity against the increment of markup using normal distribution and actual probability distribution estimated by distribution fitting, (3) estimating the maximum expected profit and optimum markup range. In the case study, the best fitted probability distribution function was estimated using the historical bidding DB retaining the competitors' bidding behavior so that the reliability was improved by estimating the output obtained from simulation experiment.

• 한국산학경영학회:학술대회논문집
• /
• 2005.11a
• /
• pp.73-94
• /
• 2005

This paper investigates the performance consequence of strategic changes when firms move closer to or further away from other firms in the industry. The study suggests a theoretical framework and hypotheses on the effect of strategic convergence and divergence on performance, and tests hypotheses with firm-level longitudinal data on the U.S. food processing industry during the period of 1985-2000. The study shows that strategic divergence is negatively related to performance, and that organizational size and firm-specific uncertainty significantly influence the effect of strategic convergence and divergence on financial performance. Particularly, high uncertainty seems to be conducive to financial performance improvement for organizations undergoing significant strategic changes converging toward other competitors. On the other hand, big organizational size seems to be beneficial for finns implementing strategic changesdiverging from other competitors.