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The analysis of substituting ability of new products - based on a prey-predator model -

The analysis of substituting ability of new products - based on a prey-predator model -

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Nowadays, as the technology development speeding up in a very fast ratio, commercial goods with new functions or new appearances emerged and disappeared rapidly. However, the substitution between new products and existing products occurs with some specific conditions. In order to find out the efficient way of market expanding and substituting ability of the new products, we use a prey-predator model to simulate the behaviors and features of the new and the existing products in market, and then we test the conclusion with an example of Windows Vista and windows 7 operating system Our final conclusion is that only if one unit of new product substituting more than one units of existing products, the new one would survive and gain a stable market share; otherwise the new products would cease to exist. The stronger substituting ability it has, the more market share it enjoys.

Abstract

I. Introduction

II. The hypothesis and model constructed

III. Model resolving and stability analysis

IV. To testify the result of the model

V. Conclusion marks

VI. Future works

Reference

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