STRATEGY IN HIGH- TECH IND DR. MARK FRUIN BUS 290/291
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 COST HIGH RISK HIGH RISK HIGH GROWTH HIGH GROWTH HIGH COMPLEXITY HIGH COMPLEXITY
IMPORTANCE OF STANDARDS & DOMINANT DESIGN TECH STANDARDS, WIDELY ADOPTED FORMATS & DOMINANT DESIGNS REDUCE CONFUSION REDUCE CONFUSION REDUCE COSTS REDUCE COSTS REDUCE RISK REDUCE RISK ENHANCE COMPATIBILITY AND ADVENT OF COMPLEMENTARY ASSETS/RESOURCES/PROD ENHANCE COMPATIBILITY AND ADVENT OF COMPLEMENTARY ASSETS/RESOURCES/PROD INCREASE OPPORTUNITIES TO MAKE MONEY INCREASE OPPORTUNITIES TO MAKE MONEY
NETWORK EFFECTS INCREASING AND DECREASING BENEFITS ARE POSSIBLE BASED ON NETWORK EFFECTS SIZE IS IMPORTANT SIZE IS IMPORTANT COMPLEMENTARY PRODUCTS ARE IMPORTANT COMPLEMENTARY PRODUCTS ARE IMPORTANT HOW MANY DIFFERENT WAYS CAN NETWORK BE ACCESSED & USED? HOW MANY DIFFERENT WAYS CAN NETWORK BE ACCESSED & USED?
STRATEGIES FOR WINNING FORMAT WARS ENSURE SUPPLY OF COMPONENTS LEVERAGE KILLER APPS AGGRESSIVELY PRICE AND CAPTURE MARKET SHARE RAZOR & BLADE STRATEGY RAZOR & BLADE STRATEGY COOPERATE WITH COMPETITORS LICENSE FORMAT
CAPTURING FIRST MOVER ADVANTAGES CONSTRUCT HIGH BARRIERS TO IMITATION DEVELOP COMPLEMENTARY ASSETS/RESOURCES HARNESS CAPABLE COMPETITORS