STRATEGY IN HIGHTECH IND

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STRATEGY IN HIGH-TECH IND

• DR. MARK FRUIN
• BUS 290/291

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WHAT ARE HIGH-TECH IND?

• TEXT INDUSTRIES IN WHICH UNDERLYING TECHNOLOGIES
  (SCIENTIFIC KNOWLEDGE) ADVANCE RAPIDLY
• HIGH GROWTH HIGH TECH?
• MY DEF OF HIGH TECH
• HIGH COST
• HIGH RISK
• HIGH GROWTH
• HIGH COMPLEXITY

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IMPORTANCE OF STANDARDS DOMINANT DESIGN

• TECH STANDARDS, WIDELY ADOPTED FORMATS DOMINANT
  DESIGNS
• REDUCE CONFUSION
• REDUCE COSTS
• REDUCE RISK
• ENHANCE COMPATIBILITY AND ADVENT OF COMPLEMENTARY
  ASSETS/RESOURCES/PROD
• INCREASE OPPORTUNITIES TO MAKE MONEY

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NETWORK EFFECTS

• INCREASING AND DECREASING BENEFITS ARE POSSIBLE
  BASED ON NETWORK EFFECTS
• SIZE IS IMPORTANT
• COMPLEMENTARY PRODUCTS ARE IMPORTANT
• HOW MANY DIFFERENT WAYS CAN NETWORK BE ACCESSED
  USED?

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STRATEGIES FOR WINNING FORMAT WARS

• ENSURE SUPPLY OF COMPONENTS
• LEVERAGE KILLER APPS
• AGGRESSIVELY PRICE AND CAPTURE MARKET SHARE
• RAZOR BLADE STRATEGY
• COOPERATE WITH COMPETITORS
• LICENSE FORMAT

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CAPTURING FIRST MOVER ADVANTAGES

• CONSTRUCT HIGH BARRIERS TO IMITATION
• DEVELOP COMPLEMENTARY ASSETS/RESOURCES
• HARNESS CAPABLE COMPETITORS