Office Equipment Market - Dissertation Example

The research examines the state of the office equipment market for determination of whether or not it can withstand new entrants. Focusing on three technologies and types of equipment, copiers, printers and facsimile machines, the findings indicate that this is an innovation driven and innovation-based market. The implication here is that the first-mover advantage principle holds, wherein new entrants are not likely to succeed. Indeed, the technologies and resources available to the first movers and early entrants render this a closed market in the sense that it is unlikely to absorb new entrants.

An application of the resource-based view of the firm confirms this hypothesis.The dissertation, however, finds that while the opportunities for new entrants in the referenced market are limited, they do exist. Quite simply stated, should the first-movers cease their continued drive towards innovation, thus, leaving a gap in the market, new firms can enter. They, however, can only do so if they have timed their innovations to coincide with the mentioned gap. As the study concludes, the opportunities for new entrants are far and few between and, indeed, their chances for success are minimal at best, considering resource variances between them and the early entrants.

The fact remains, however, that such opportunities exist with the key being innovation and product timing. Chapter 1 - Introduction and Overview1.1 IntroductionTo those from without the industry, the office equipment market appears to be a highly lucrative one. Indeed, as several market researchers have remarked, the profits which the printer, copier and facsimile machines' market appears to promise seems to beckon new market players to enter this particular industrial and market sector. To those from without the industry, the office equipment market appears to be a highly lucrative one.

Indeed, as several market researchers have remarked, the profits which the printer, copier and facsimile machines’ market appears to promise seems to beckon new market players to enter this particular industrial and market sector (Herbig & Kramer, 1994; Elliot, 2005; Ruffo, Tuck and Hague, 2007). Irrespective of appearances, however, and not withstanding the size of the market, there is no room for new players as this is a first-mover market in which the odds are stacked against new entrants.

As noted by several market analysts and marketing scholars, innovation is the key to survival within this market and, due to that, the market status of its key players (Xerox, IBM, Ricoh, Canon, Kyocera-Mita and HP) is virtually untouchable (Clarke, 2000). Proceeding for the above-stated, it is apparent that professional and academic opinion tends towards the contention that the office equipment market is not open to new players; that there is no room for new players within this market. This is not, as some may assume, because the key players have a tight, quasi-monopolistic grip over the market.

Instead, and as noted in the above, this is because this is a market of innovation and, hence, by definition, favours early movers. In order to clarify this further, it is necessary to explore the nature of innovation. Innovation, it is argued, is more than invention. Put differently, inventions do not necessarily result in innovation.