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13 Cards in this Set
- Front
- Back
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high tech industries
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scientific knowledge is advancing rapidly
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technology is
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the body of scientific knowledge used in the production of goods or services
accounting for an even larger share of economic activity revolutionizing aspects of the product or production system in industries not thought of as high-tech |
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technical standards
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set of technical specifications that producers adhere to when making the product or a component of it
the source of product differentiation and competitive advantage |
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format wars
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often, only one standard will come to dominate a market
many battles in high tech industries revolve around companies competing to be the one that sets the standard |
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benefits of standards
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guarantee compatibility between products and their compliments
reduce confusion in the minds of consumers reduce production costs through mass production reduce the risks associated with supplying complementary products and help leads to both low-costs and differentiation advantages for individual companies |
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three ways standards emerge
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companies may lobby the government to mandate an industry standards
standards are often set by cooperation among businesses or industry forums standards are often selected competitively by market demand |
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strategies for winning a format war
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ensure a supply of complements
leverage killer applications aggressively price and market cooperate with competitors license the format |
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first mover advantage
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the first to develop and pioneer revolutionary new products that can lead to an enduring competitive advantage
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first mover advantage
satisfies unmet needs and demand is high |
may be in monopoly position to capture high profits
signal opportunity to potential rivals |
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5 sources of first mover advantages
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exploit network effects and positive feedback loops
establish significant brand loyalty enable economies of scale and learning effects create switching costs for customers accumulate valuable knowledge |
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firs mover disadvantages
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pioneering costs
more prone to make mistakes risk of building the wrong resources and capabilities may invest in inferior or obsolete technology |
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strategies for exploiting first mover advantages
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going it alone
strategic alliance or joint venture license the innovation to others |
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technological paradigm shifts
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occur when new technologies emerge that
revolutionize the structure of the industry dramatically alter the nature of the competition requires companies to adopt new strategies to survive |
