• DocumentCode
    2430246
  • Title

    Strategic decisions by IT firm when new technology substitutes old one

  • Author

    Liu, Taiping ; Tang, Fei

  • Author_Institution
    Coll. of Appl. Sci. & Technol., China Univ. of Min. & Technol., Xuzhou, China
  • fYear
    2011
  • fDate
    8-11 Jan. 2011
  • Firstpage
    500
  • Lastpage
    503
  • Abstract
    In order to promote its profit, IT firm continually issues new technology. However, the old one still exists and has some power of attraction when the new product enters market. Then how to make new technology substitute old one becomes a critical problem. This paper builds a simple model to analyze the problem. This model focuses on the pricing strategy and compatibility decision of IT firm with considering the characteristics of network externality and the existence of switching cost in IT industry.
  • Keywords
    DP management; organisational aspects; pricing; IT firm; pricing strategy; strategic decisions; Analytical models; Biological system modeling; Economics; Educational institutions; Industries; Pricing; Switches; compatibility; network externality; pricing strategy; switching cost; technology adoption;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Management Science and Industrial Engineering (MSIE), 2011 International Conference on
  • Conference_Location
    Harbin
  • Print_ISBN
    978-1-4244-8383-9
  • Type

    conf

  • DOI
    10.1109/MSIE.2011.5707453
  • Filename
    5707453