BUS 478 Chapter 7: Ch. 7 Notes

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 478
• Professor: Pek- Hooi Soh

Document Summary

Technical standards set of technical specifications that producers adhere to when making a product or component. Format wars battles to control the source of differentiation, and thus value that such diff can create for customers. Dominant design common set of features or design characteristics. Standards help guarantee compatibility b/w products and their complements: ex. containers used with railcars, trucks, and ships and pcs are used with software applications. Help reduce confusion in minds of consumers: when blu-ray launched, it was competing against hd-dvd to be the dominant video standard. Reduce risks associated with supplying complementary products and thus increase supply for those complements. Public domain government or associated set standards of knowledge or tech that any company can freely incorporate into its product. Network effects network of complementary products as primary determinant of demand for an industry"s product. Ex. demand for automobiles in early 20th century was an increasing function of the network of paved roads and gas stations.