Competition, Strategy, and Performance: A Case Study of China’s Emerging Air Purifier Industry

Abstract

When industries are in their early stages of evolution, competitors often show some common behaviors (Geroski, 2003), but “right” strategies do not seem to exist (Porter, 1980). By using data from a major purchasing website, this study investigates the emerging air purifier industry in China. Findings support some assumptions on new industries: a surge of new entries, competing technologies, and unrealistic expectations. Implications for effective strategies include product positioning and branding. The study also suggests the importance of early entry into a new industry, but early entry does not ensure success.