Standardization

1. Complementors

1.1. Benefits of standardization

1.2. Downside of standardization

2. Incumbents

2.1. Backwards compatibility: New technologies have the option to prevent backwards compatibility in order to make way for their new tech.

2.2. Introduction of new of equipment: New technologies can offer newer equipment with their product as to increase sales and make older tech outdated.

3. Innovators

3.1. Benefits of standards: Standards make it easier for innovators to enter into market because those standards help to expand the market

4. Consumers

4.1. Benefits of standardization: Standardization prevents lock-in and overpricing. It also prevents companies from trying to gain control of one market.

4.2. Downside of standardization: Standardization prevents variety for consumers. When something becomes standard that means there is only one choice because it has become standard across the market.

5. Impact of Standardization

5.1. Expanded Network Externalities: The implementation of standards makes it easier to share data and use the product. Having one standard for data sharing makes it easier for users to share information with each other and use the product. This level of ease makes it more likely for users to share the product with others, increasing the popularity of the product.

5.2. Reduced Uncertainty: The implementation of standards reduces consumer uncertainty thus making them more likely to adapt a new technology. Additionally, the more people adapt to a new technology the more reputable that tech becomes.

6. Market Competition

6.1. Inter-market Competition: In this scenario companies are competing within the market rather than for the market. This is because standards prevent lock-in which leaves companies to focus on gaining competition within the market.

6.2. "Highjacked" standard: This is when consumers buy into a product that is advertised as standard, but upon joining they realize it is actually a lock-in.

7. Allies

7.1. Interconnection amongs allies

7.2. Assembling allies