Learning from Experience in Positioning New Computer Products, by T. Modis, Technological Forecasting & Social Change, 41, 1992, pages 391-399.

 

ABSTRACT

The correct positioning of new computer products has become of crucial importance as markets saturate and competition intensifies. The logistic function can provide an aid to product positioning. The method presented here addresses questions of price and performance only, and involves determination of learning curves from data on past successful product launches. It assumes that companies learn like individuals and that variables such as performance/price grow according to logistic curves limited by the basic technologies at hand.

Digital's experience shows that its VAX family of computers is amenable to such an analysis, which also provides insights on the overall evolution of that technology. Besides guidelines for product positioning this approach offers means for estimating price drops and/or performance enhancements necessitated from delays in product delivery.

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