SGMT 3000 Study Guide - Final Guide: Online Banking, Onboarding, The Lightstone Group

• School: York University
• Department: Strategic Management
• Course: SGMT 3000
• Professor: Stan Xiao Li

Document Summary

Benefits of standards: guarantees compatibility between products and complements, reduces confusion in the mind of the consumers, reduces production costs and risks, leads to low-cost and differentiation advantages, helps raise the level of industry profitability. First mover: firm that pioneers a particular product category or feature by being first to offer it to market (creation of a revolutionary product results in a monopoly position) Advantages: opportunity to exploit network effects & positive feedback loops, ability to establish brand loyalty and increase. How to exploit the advantages develop and market the innovation, and do so jointly with other companies through a strategic alliance or joint venture or license the innovation to others and allow them to develop the market. Factors to consider when selecting a strategy: complementary assets, required to exploit new innovation and gain a competitive advantage. Helps build brand loyalty & achieve market penetration: height of barriers to imitation, higher barriers = longer to imitate.