Title: The strategy of collaborative monopoly with use of the scheme of standardisation for storage product

Authors: Haruo Awano; Koji Tanabe

Addresses: Department of Innovation Science, Tokyo Institute of Technology, CIC-805S, 3-3-6 Shibaura, Minato-Ku, Tokyo 108-0023, Japan ' Tokyo Institute of Technology, 2-12-1 Ookayama, Meguro-Ku, Tokyo 152-8550, Japan

Abstract: It is important to standardise a new product in order to expand a market. However, it is not easy to profit from a standardised product because its specification is open to competitors. This paper examines the way in which IBM, HP and Quantum (former Seagate) were able to succeed in profiting from the business of linear tape open (LTO) and in jointly monopolising the market in spite of the fact that LTO was standardised. A key factor for their success is a strategy of collaborative monopoly with use of the scheme of standardisation. This strategy consists of two strategic activities. First activity is to carry out the open type 'razor and blade' business model by utilising the scheme of standardisation in order to profit from the consumables such as storage media. Second activity is to realise antecedent development of both technology and business for the next generation of the media.

Keywords: standardisation; monopoly; collaboration; razor and blade; business model; strategy; consumables; IBM; HP; Quantum; linear tape open; LTO; antecedent development; DVD.

DOI: 10.1504/IJTM.2019.101269

International Journal of Technology Management, 2019 Vol.81 No.1/2, pp.51 - 69

Accepted: 29 Jun 2018
Published online: 21 Jun 2019 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article