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Tech Strategy: Lost and Found Notes

I just found these notes stashed away in a notebook.

Dynamics of Standards Driven Markets

* A new technology can influence an industry.

* In such a market, a winner can take it all.

* A company can get increasing returns to scale.

* A company can learn over time.

* A company can sell large volumes and thus be cost efficient.

* A company can take advantage of switching costs.

* Direct Network Effects: An increase in value due to direct links.

* An indirect Network effect: A market increase due to complementary products and services

* If enough people get on my network, it is better for me to have properitary technology instead of open standards.

However,

* In this market, a tech discontinuity can displace existing players.

* A niche can be more valuable than a netwirk.

* One can create translators to enable switching

* A differentiating feature can overcome network size.

* A new technology can invade a market before lockin occurs.

* A competitor could use penetrating prices, strategic alliances and licencing.

* It could also create complementary products inhouse.

* It could provide incentives to third parties to create complementary assets.

* It could target lead users.

* It could use speed-to-market strategy.

* One could also use publicity and standards adoption to create a barrier for competitors.

* Other strategies are to participate with standards bodies and government lobbying.

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