Standards War Dynamics:attle for Technological Dominance of Next Generation DVD
Date Issued
2008
Date
2008
Author(s)
Lin, Sandy Shan-Ju
Abstract
Throughout the rapid pace of technological change in the last two decades, many occurrences of battles for dominance between two or more rival technologies have highlighted the importance of standardization for industry success and firms’ long term competitive position. Following its 1997 debut, the DVD (digital versatile disc, or digital video disc) had conquered the home-video market previously ruled by VHS tapes, as well as became the major storage medium choice in computer industry. However, in the digital information age, the needs for massive storage capacity for large information data, and high definition entertainment usage are becoming inevitable trends. In response, two format, Blu-ray Disc technology lead by Sony, and HD DVD lead by Toshiba, emerged in the market competing to become the successor of standard DVD.his research focus on how firm strategy, industrial structure and environment factor are going to affect the standards war out come and industry development. The four major focuses are: 1) What are the lessons and implications of standardization process in the VCR and DVD industry to current format war? 2)What are the strategy maneuvers of each format as the standard war proceed? 3) What are the major determinant factors of dominant design of high definition DVD? 4) What are the best, worst and most possible scenarios and why?his study use qualitative research method, mainly based on the primary sources of interviews and questionnaires, secondary data, theoretical frameworks for standardization and dominance design are used to analyze the dominant factors and strategies practices throughout the dominance process. Lastly, based on the expert opinion on the importance and uncertainties of dominance factors, the study comes out with 4 scenarios. The paper concludes that at current status quo, Blu-ray disc’s advancement in technology, copyright management, and strategic alliance efforts give it more competitive position than HD DVD’s low cost and penetration pricing strategies, in attracting more industry supporters, including content providers, PC and consumer industry manufacturers and distribution channels to become the dominant design of next generation DVD in year 2009.
Subjects
Standards War
Dominant Design
Optical Storage Industry
Blue laser DVD
Type
thesis
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