By Peter Grindley
ISBN-10: 0198288077
ISBN-13: 9780198288077
This publication goals to aid the company strategist and policy-maker know the way compatibility criteria can be used to make sure enterprise luck. It presents a framework for criteria method and coverage, including a sequence of case-studies which interpret the economics of criteria in useful settings. The publication considers the issues of building a brand new typical out there and successful criteria contests. It additionally reviews questions of the way to holding the profitability of a regular and the way to compete inside a longtime commonplace. It combines the strategic research with an assessment of criteria coverage, and indicates ways that markets and coverage intervention may perhaps successfully be used jointly. instances comprise contests for criteria for video cassette recorders, electronic audio tape, own pcs, open computers, high-definition tv, and Telepoint cordless telephones. criteria have lengthy been obvious as a technical challenge, but in a good number of industries they're vital to company approach and technical features are just a part of the hassle wanted for product luck. They indicate very diverse suggestions and regulations than for traditional items.
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Additional info for Standards, Strategy, and Policy: Cases and Stories
Example text
The dilemma for the firm is that giving open access to its standard gives it more chance of winning a contest but the higher competition this brings reduces margins and market share. If neither alternative is attractive the firm may decide to adopt an external standard rather than develop its own. The firm wants the standard it supports to be established in the market, but this need not be its own design. It may be better off adopting a competitor’s standard at lower cost and without risking fragmenting the market.
Low pricing may be used even when there is no direct competitor to build up the base and get to the fast-growth phase earlier. It brings profits forward and reduces the risk of unexpected challenges from other products. The low pricing and high marketing costs unfortunately call for high up-front investment, at a time when firms often rely on high introduction prices to recover R&D costs and fund further development. 43) (g) Use preannouncements Product preannouncements are a particular way of influencing expectations.
It must decide whether to develop its own standard or adopt an outside one, and whether to keep the design proprietary or share it. 21) for winning contests. These differ from conventional approaches and will be the main concern in the cases. At the same time the firm considers profit-maximization strategies for optimizing individual returns from the standard. The need to win the contest limits the scope for fine-tuning returns, and sharing the market may be unavoidable. The essential choice is between sharing a large market and dominating a small niche.
Standards, Strategy, and Policy: Cases and Stories by Peter Grindley
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