The strategy of repeated 'open' and 'narrow' approaches for standardised media Online publication date: Mon, 22-Oct-2018
by Haruo Awano; Koji Tanabe
International Journal of Technology Management (IJTM), Vol. 78, No. 4, 2018
Abstract: International standardisation contributes to market expansion. The standardisation also leads to the rapid spread of the technology and allows easy entry for many competitors into the market. This often leads to severe price erosion, with the result that a company which develops business opportunities from innovation fails to profit therefrom. This paper examines the way in which Sony could succeed in profiting from the business of 130 mm MO media in spite of the fact that the media was standardised. A key factor for the success is a strategy of repeated 'open' and 'narrow' approaches. One approach is to build an entry barrier by creating a market in demand for highly reliable media. The other approach is periodic introduction of a new generation of the media with double capacity and its periodic standardisation. The market, which is once open to competitors through standardisation, is narrowed again by the aforementioned strategy.
Online publication date: Mon, 22-Oct-2018
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technology Management (IJTM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com