Chapter 7

Question 1

What is format wars?

Answer 1

Battle to control the source of differentiation and the value that comes with it

Question 2

What is dominant design?

Answer 2

Common set of features or design characteristics

Question 3

What is public domain?

Answer 3

Government or association-set standard of knowledge or tech that company can use freely

Question 4

What is network effects?

Answer 4

The network of complementary products as a primary determinant of the demand on industry’s product

Question 5

What are the strategies to win format war?

Answer 5

Ensure a supply of complements, leverage killer applications, aggressive pricing and marketing, cooperate with competitors, and license the format

Question 5

What are the strategies to win format war?

Answer 5

Ensure a supply of complements, leverage killer applications, aggressive pricing and marketing, cooperate with competitors, and license the format

Question 6

What is leveraging killer applications?

Answer 6

Applications or uses of new tech or product that is so compelling that consumers have to adopt them driving the competitors obsolete

Question 7

What is razor and blade strategy?

Answer 7

Pricing the product low that it stimulates demand and pricing complements high - razor and blade, printer and ink

Question 8

What is technological paradigm shift

Answer 8

Shift in new tech that revolutionalize the structure of the industry, dramatically change the nature of competition, and force companies to adopt the new changes