SGMT 3000 Lecture Notes - Lecture 7: Qwerty, Network Effect, Customer Switching
13 Dec 2017
School
Department
Course
Professor
Document Summary
Standard qwerty keyboard format is the same across all devices: pcs with intel microprocessors, microsoft operating system, dominant design: common set of features or design characteristics (ie mouse, modem, keyboard, dvd drive on computers) Industry standards such as printers, usb and modems ensure that the functions will work on all different devices source of competitive advantage and high profitability. Benefits of standards: products can work well with their complements reduces of costs of testing if products work well with other, consumers can get confused with multiple different products in the market. Standards have led to both low cost and differentiation advantages for companies and helps raise the overall industry profitability. No one can profit from the qwerty key format. Industry standard selected competitively by purchasing patterns of customers in the marketplace. Source of sustained competitive advantage from ownership of an industry standard protected from patents and copyrights (ie microsoft and intel)
