1. Industry Standard & Dominant Design 2. S-curve and Product Life Cycle 3. Multiple Dimensions of Value, Installed Base and Complementary Goods 4. Sample cases (Video industry) - VHS vs Betamax - HD DVD vs Blu-ray - Netflix vs Blockbuster - Streaming Wars 5. Tech Giants (Amazon, Microsoft, Facebook, Google and Apple)

1. by Engr. Nick Salomon

2. Outline
I. Industry Standard & Dominant Design
II. S-curve and Product Life Cycle
III. Multiple Dimensions of Value
IV. Sample cases (Video industry)
V. Tech Giants

3. • is the optimum criteria
for any industry to
function and carry out
operation in their
respective fields of
production.
Industry Standard

4. • Correspond to legal standards, established by public
entities, producers consortia, or cooperating firms.
De jure standards
 American Standard Code for Information Interchange
- format for text files in computers and on the Internet.
 Philippine Mechanical Engineering Code
 National Building Code
 International Telecommunication Union
- Telecommunications or radio-communications

5. • Coincide with the dominant design, and depend on the
market acceptance.
• Private requirement
De facto standards
 Microsoft's Windows operating system
 Nikola Tesla’s AC Current
 Henry Ford’s Assembly Line
 JVC’s VHS video tape format

6. • is a single product or process
architecture/design that dominates a product
category. (Schilling, 2011)
• usually a 50 percent or more of the market.
Dominant Design

7. • is a product within a product category gains general
acceptance as the standard for technical features that
other market players must follow if they want to
acquire significant market share. (Utterback, 1994)
Dominant Design

11. • Superior recoding format
over VHS:
 Better resolution
 Slightly superior sound
 More stable image
 Recorders have higher quality construction
• First mover!
• In 1975, they owned 100% of the market.

12. • Longer recording time
• Licensing Agreements
(Electronic Manufacturers)
• Partnerships
(Motion Picture Companies)

13. Buyer Utility Map

14. Buyer Utility Map

15. Buyer Utility Map

17.  Blue Laser Light
- Shorter wavelength than the red
light used in conventional CD and
DVD players
- Can read denser information
x Compatibility problems

23. Complementary Goods
• additional goods and services
that enable or enhance the
value of another good.

28.  INNOVATE or DIE.
 Being First To Market Isn't Always Best.
 The CUSTOMER DRIVEN approach always
win.

30.  INNOVATE or DIE.
 Being First To Market Isn't Always Best.
 The CUSTOMER DRIVEN approach always
win.
 TECHNOLOGY by itself is not the disruptor.
Not being Customer-Centric is the biggest
threat to any business.

32. Installed Base
• the number of users of a
particular good.

34. Installed Base & Complementary Goods

36. 1. They have huge audiences (Network Effects).

37. 2. Buying out the competition.

38. 1. WhatsApp - $19 Billion (2014)
2. Oculus VR - $2 Billion (2014)
3. Instagram - $1 Billion (2012)
4. LiveRail - $500 M (2014)
5. Atlas - $100 M (2013)

39. 1. Android (2005)
2. Youtube - $1.65 Billion (2006)
3. DoubleClick (2007)
4. AdMob - $750 M (2009)
5. Waze - $996 M (2013)
Recently, Google buys Fitbit for $2.1 billion

40. 3. Competition regulation looks at price.