Improving on existing products is an effective product differentiation strategy for firms. We refer to such improved products as next-generation products (NGPs). Research shows that 40% of product transitions fail and that some lead to bankruptcies. Bad timing is often mentioned as one of the...

Problem definition: We study a dynamic capacity investment problem in a competitive market under demand uncertainty. Two firms make sequential capacity decisions. Each firm's decision interacts with the opponent's current and future capacity. A firm can either plan investments proactively,...

An upward line extension is a new, improved product within an existing product category for the high-end market. Many manufacturers pursue line-extension strategies, but they carry risks due to uncertain consumer taste, the internal competition between products (represented by the firm's...

An upward line extension is a new improved product within an existing product category for the high end of the market. Many firms pursue line-extension strategies, but such strategies carry risks due to uncertain consumer taste, the internal competition between products, and the external...

For nearly two decades, ocean carriers have been locked in an arms race for capacity, which has led to huge losses for many and even bankruptcy for some. We investigate the nature of this investment race by studying a long-term capacity investment problem in a duopoly under demand uncertainty....