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Strategies & Market Trends : Bowling Alleys and Tornadoes: G&K Hunting Grounds
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To: John Stichnoth who wrote (25)7/16/1999 1:22:00 AM
From: HeyRainier  Read Replies (1) of 153
 
Someone asked for my opinion on the recently proclaimed death of DIVX in favor of the DVD standard, as a way to contribute to our discussion on 'standards battles.' Here's what I think:

That's actually a good suggestion. What I was looking for though was one where there is such a battle going on, or better yet, being won, but with the winner being the champion of that particular technology, preferably a technology that is proprietary, and one with high switching costs.

By being able to beat the competition in getting that standard adopted, the way I look at it is that a company will have effectively established something analogous to a "black hole" in the ground, in which customers will have little choice but to go with the flow because (1) it won the standards battle so there is no other viable choice out there and (2) everyone is designing some compatible unit that centers on that standard.

With DVD being pretty much a non-proprietary platform (the architecture is not controlled by a single company), not to mention one with low switching costs, it would seem to me that it would fall under the 3rd quadrant in Moore's charts (found on page 51), which includes characteristics considered to be the least attractive in a gorilla game.

--Rainier
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