Loading...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.
Read more...
