SGMT 3000 Lecture Notes - Lecture 7: Cost Leadership, Energizer, Netbook
9 May 2016
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Document Summary
Understand the tendency toward standardization in many high-technology markets. Describe the strategies that firms can use to establish their technology as the standard in a market. Explain the cost structure of many high-technology firms, and articulate the strategic implications of this structure. Explain the nature of technological paradigm shifts and their implications for enterprise strategy. High tech industries are those in which the underlying scientific knowledge that companies in the industry use is rapidly changing. Many low tech companies have become increasingly high tech (i. e. retail amazon, info systems at walmart) Technical standards: set of technical specifications that producers adhere to when making the product, or a component of it. Format wars: battles to control the source of differentiation, and the value that such differentiation can create for the customer: battle to set and control technical standards in a market. Dominant design: common set of features or design characteristics. Guarantees compatibility between products and their complements.
