In complementary good markets, products are usually incompatible across brands and even technologies under the same brand. For example, in the men's shaving market, Gillette blade cartridges can only be used with Gillette razors. Given the incompatibility, firms face the tradeoff of new product introduction. The question arises: how often will the firm introduce new and incompatible products in those complementary markets?
Hi,
Jianhui Li
In my opinion it depends on the demand curve and firm will keep enjoying those products and when see that the demand curve is shifting so it introduce new and incompatible products. Yes in the mean while the competitors will start entering the market with new technology, innovation, design, durability and etc...and keep producing compatible product. So firms needed to design their product strategy and its inclusion of new product should depends on its competitors and rise or decline in calculated demand.
This is a bright question. One theory of Joseph Schumpter seems relevant, namely that of Creative Destruction. A product has a life-cycle, and before a brand declines, a firm should and usually introduce a new brand. The timing will depend on the product's life-cycle. Competitors may want to follow a flying geese model in their planned introduction. There remain some game theoretic consideration about rivalry for market share. Sorry to be so general.
you can apply a survey this may guide you but it will be good if you compare between urban and rural area
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