Please enable JavaScript.

Coggle requires JavaScript to display documents.

Technology strategy, vertical integration, Corporate Diversification,…

- - - - reduces production costs and risks associated with supplying complementary products
      - leads to low-cost and differentiation advantages for individual companies
      - reduces confusion in the mind of customers
      - helps raise the level of industry profiatability
      - guarantees capatibility between products and their complements.
    - - Standards emerge in an industry when the benefits of establishing are recognized
      - technical standards
        
        set by cooperation among businesses through the medium of an industru association. the gov also sets standard
        
        public domain: any company can freely incorporate the knowledge and technology upon which the standard is based into its product
  - - - leverage killer applications: use application or a new technology or product so compelling that customers adopt them in droves, killing competing format
      - pusue aggressive pricing and marketing:
        Razor and blade strategy: pricing the product low to increase the installed base, then pricing complements high to make profits
      - cooperate with competitors: Companies have been close to simultaneously introducing competing and incompatible
        technological standards a number of times.
      - ensure a supply of complements:
      - general principle: make network effects work in one's favor and against competitors by build the installed base for standard as rapidly as possible
      - license the format: to other enterprises so that those others can produce products based on the format is another strategy often adopted. The company that pioneered the
        format gains from the licensing fees that return to it
- - - - a firm's integration strategy may be rare because a firm integrates or doesn't integrate
        
        the question of rareness doesn't depend on the number of forms observed
      - a firm vertical integration strategy is rare or common based on the value created by the strategy
      - vertical integration strategy can be rare because the are a small number of firm that are ability to vertically integrate efficiently or because a small number of frim can use non integration to managing an exchange
- - - - Shared activities, risk reduction, tax advantages, and employee compensation as bases for corporate diversification are usually relatively easy to duplicate
      - difficult-to-duplicate economies of scope include
        
        core competencies,
        
        internal capital allocation efficiencies, multipoint competition,
        
        and exploitation of market power
    - - when relevant economies are
        obtained through the independent actions of businesses within a firm
      - when relevant
        economies are obtained through strategic alliances.( lieen minh chieens luocw)