Circumstances of a Standard Battle
§ In a standard battle multiple firms compete for the market and not in the market.
§ A standard battle is more likely if
• firms are symmetric in their market and technology positions,
• the standards battle does not delay consumer acceptance of the technology, and
• intra-technology competition is likely to dissipate potential industry profits.
In a standard battle, firms can use the following strategies
§ Establishing a large installed base quickly and visibly e.g. by dynamic or penetration pricing
§ Public commitments to low prices over the long term
§ Managing consumers’ expectations
§ Strategic pre-announcement
§ Improve the relative qualities of the own technology
§ Offering a sufficient supply of complementary goods
§ Pre-emption (trade off between quality and timing)
§ Licensing to build up a critical mass of hard- and/or software
§ Acquiring a rival firm