The art of standards wars

Competition in the information age often takes the form of a standards war: a battle for market dominance between incompatible technologies. A company 's success or failure can easily hinge on its ability to wage such a standa rds war. Standards wars are especially bitter in markets with strong networ k effects, where consumers place great value on compatibility and interconn ection with each other. These markets tend to exhibit positive feedback and "tip" to a single winner. Based on a study of dozens of standards wars goi ng back over 100 years, this article offers a "battle guide" for waging a s tandards war. After classifying standards wars and identifying seven key as sets that firms can use to successfully establish a new technology, the aut hors recommend three tactics in standards battles: building alliances, expl oiting first-mover advantages, and managing consumer expectations.