1. Strategy #7

2. The Effects of Standards Expanded network externalities Reduced uncertainty and consumer lock-in Competition on price Proprietary extensions Shift to competition on components –IBM plug compatible products in the 1970s

3. Winners and Losers Consumers Complementors Incumbents Innovators

4. Standard Setting Standards bodies –IEEE –NIST –ISO Tactics –Depends on your objective Pre-emptive building a customer base Build an alliance outside the standard setting process Use of patents

5. Alliances Allies can include other firms, customers, and the government Interconnections Truces

6. Standards Tactics Weak firm willing to fight Weak firm wants a standard Strong firm willing to fight Standards War Strong firm tries to block weak firm Strong firm wants a standard Voluntary standard

7. Open Standards Open standards without sponsors are endangered Open standards can be hijacked by firms wanting to take them in a proprietary direction

8. Types of Standards Wars Rival technology is compatible Rival technology is incompatible Your technology is compatible Rival Evolutions Evolution versus Revolution Your technology is incompatible Revolution versus Evolution Rival Revolutions

9. Assets for Standards Wars in Network Markets 1)Control over installed customer base 2)Intellectual property rights 3)Ability to innovate 4)First mover advantages 5)Manufacturing abilities 6)Complement production 7)Reputation and brand

10. Standards War Tactics Preemption Expectation management

11. After Victory Technology innovation and migration paths Building complementary products Use of your installed base

12. The Role of Government Differentiation, lock-in, and network externalities may raise issues of unfair competition and antitrust There may also be issues raised by regulatory agencies such as the FCC Anti-trust actions may also be raised by non US governmental entities such as the EU

13. Competition Policy Mergers and acquisitions Predatory pricing Exclusive dealing Bundling

14. Microsoft and the European Union Antitrust action based on tying MS Media Player to Windows OS Does the EU have industry support for sanctions against Microsoft? Is there a violation of Microsoft’s Intellectual Property?