How to profit from de facto standard-based competition: Learning from Japanese firms' experiences

Hideo Yamada, Sam Kurokawa

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

This paper discusses strategic issues related to technological de facto standards. Based on our historical and empirical analyses of 13 cases mainly observed in the Japanese audio-visual and IT-related fields, we pose the following six propositions on de facto standard-based competition: 1 User will benefit by utilising and exchanging skill/software based on de facto standards, and manufacturers will benefit by forming de facto standards through their market dominance and licensing income. 2 A product which requires a high level of connectivity and accumulated skill/software is likely to form a de facto technological standard. 3 The earlier a firm establishes a majority of the market share, the more likely it is to establish a technological de facto standard. 4 A de facto standard is likely to be fixed when its diffusion (share) reaches 2-3% of the market. 5 The more killer applications a firm can introduce the more likely it is to establish/maintain/profit from a technological de facto standard. 6 The more efforts a firm makes to promote its technology/product to its competitors, suppliers and distributors, the more likely it is to establish/maintain/profit from a technological de facto standard.

Original languageEnglish
Pages (from-to)299-326
Number of pages28
JournalInternational Journal of Technology Management
Volume30
Issue number3-4
DOIs
Publication statusPublished - 2005

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Keywords

  • Competitive strategy
  • De facto standard
  • Japanese management
  • Management of technology
  • Technology strategy

ASJC Scopus subject areas

  • Engineering (miscellaneous)
  • Management of Technology and Innovation
  • Strategy and Management
  • Management Science and Operations Research

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