Product competitiveness in the IT market based on modeling dynamics of competitive positions

Abstract

This paper is about evaluating product competitiveness in the IT market. The developed model is explained on the integrated approach that takes into account the dynamics of competitive positions and market structure. It reveals the changes of structural features in the IT market based on the index of structural shifts. The dynamics of competitive positions are proposed to be evaluated with the vector model. The procedure consists of two stages. Firstly, competitive position is estimated by means of expectancy-value model. Secondly, the index of product profitability is evaluated. Finally, we can form a vector of competitive position based on these two indicators and model the dynamics of it. Thus the comprehensive model of product’s competitiveness is offered and managerial implications to develop the IT products’ competitiveness are provided.