The dynamics of market positioning: An empirical analysis of the United States automobile market

This thesis explores the factors which influence the market positioning dynamics and its short term and long term performance implications using a longitudinal approach in the context of the U.S. automotive industry. The study derives on the co-evolutionary theory, the organizational learning theory and the game theory to explore the external and internal drivers of market positioning change. A special emphasis is given to the factors that motivate and provide opportunity for change and the organizational capabilities required for a market positioning dynamic. Market positioning dynamic is defined on two dimensions, horizontal and vertical. Specific hypotheses regarding the effects of several internal and external drivers on the propensity to engage in a market positioning dynamic on each of the dimensions are developed. Further, the direction of the market positioning dynamics and the short term and long term performance implications of erratic and consistent market positioning dynamism are considered. Three separate models are developed in order to test the hypotheses: a pooled hazard rate model of market positioning dynamics, a competing hazards model of different types of market positioning dynamics and a persistence model of the short term and long term performance implications of market positioning dynamics.