PRODUCT POSITIONING STRATEGY AND FIRMS’ PRODUCT SCOPE: AN EMPIRICAL ANALYSIS OF THE ACTION CAMERA MARKET, 2005-2015

This thesis provides empirical evidence on firm’s product differentiation strategy in the relatively young market of action sports cameras, a product category under digital camera and camcorder market. The period of observation goes from the beginning of the market until the end of 2015. The relationships between product differentiation strategy, firm’s scope, experience in the focal and related markets and the competition are investigated. The results show that incumbents from related markets are more inclined to disperse products in the high-end segments of the new market, whereas other firms tend to follow the same strategy as they acquire more and more experience. Moreover manufacturers from more distant markets tend to target low quality segments and introduce fewer variations of product. Finally, I found a positive relationship between market competition and product positioning in the low-end segments.