Advanced Competitive Strategy | Online Course Support

What can you do to win a standards battle with a competitor?

 
 
 
 

This is correct. Announcing your standard before it is finished can increase customer awareness for that standard and can increase customer base once the standard is finished (if the strategic pre-announcement is executed cleverly at least).

 
 

This is true. If a company offering standard A also offers various complementary goods for that standard than firm B’s standard B this can increase the customer base of standard A. Customers using standard A and the complements simply obtain higher utility from using A instead of B.

 

This is right. Consumers might fear that your strategy is to first keep prices low and increase them later. By committing to not increase your prices in the future you reduce this fear.

 
 

This is correct. If you simply acquire the firm operating the competing standard you can also win the “standards battle”. Now you can determine which standard to use and are more likely to obtain a sufficiently high mass of users (since there will only be one standard).

 
 

This is true. If a firm captures a large market share or acquires many customers for its product standard in a very early stage then following adopters may be more likely to also adopt this standard.

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