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STRATEGY IN HIGH-TECH IND

STRATEGY IN HIGH-TECH IND. DR. MARK FRUIN BUS 290/291. WHAT ARE HIGH-TECH IND?. TEXT: INDUSTRIES IN WHICH UNDERLYING TECHNOLOGIES (SCIENTIFIC KNOWLEDGE) ADVANCE RAPIDLY HIGH GROWTH = HIGH TECH? MY DEF OF HIGH TECH HIGH COST HIGH RISK HIGH GROWTH HIGH COMPLEXITY.

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STRATEGY IN HIGH-TECH IND

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  1. STRATEGY IN HIGH-TECH IND DR. MARK FRUIN BUS 290/291

  2. WHAT ARE HIGH-TECH IND? • TEXT: INDUSTRIES IN WHICH UNDERLYING TECHNOLOGIES (SCIENTIFIC KNOWLEDGE) ADVANCE RAPIDLY • HIGH GROWTH = HIGH TECH? • MY DEF OF HIGH TECH • HIGH COST • HIGH RISK • HIGH GROWTH • HIGH COMPLEXITY

  3. IMPORTANCE OF STANDARDS & DOMINANT DESIGN • TECH STANDARDS, WIDELY ADOPTED FORMATS & DOMINANT DESIGNS • REDUCE CONFUSION • REDUCE COSTS • REDUCE RISK • ENHANCE COMPATIBILITY AND ADVENT OF COMPLEMENTARY ASSETS/RESOURCES/PROD • INCREASE OPPORTUNITIES TO MAKE MONEY

  4. NETWORK EFFECTS • INCREASING AND DECREASING BENEFITS ARE POSSIBLE BASED ON NETWORK EFFECTS • SIZE IS IMPORTANT • COMPLEMENTARY PRODUCTS ARE IMPORTANT • HOW MANY DIFFERENT WAYS CAN NETWORK BE ACCESSED & USED?

  5. STRATEGIES FOR WINNING FORMAT WARS • ENSURE SUPPLY OF COMPONENTS • LEVERAGE KILLER APPS • AGGRESSIVELY PRICE AND CAPTURE MARKET SHARE • RAZOR & BLADE STRATEGY • COOPERATE WITH COMPETITORS • LICENSE FORMAT

  6. CAPTURING FIRST MOVER ADVANTAGES • CONSTRUCT HIGH BARRIERS TO IMITATION • DEVELOP COMPLEMENTARY ASSETS/RESOURCES • HARNESS CAPABLE COMPETITORS

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