Question

A single product or process architecture that dominates a product category usually 50% or more of the market. A dominant design is a de facto standard, meaning that while it may be officially enforced or acknowledged, it has become a standard for the industry. Are dominant designs beneficial for competitors, consumers, complementors, and suppliers?

Answer 1

Dominant designs are not good for competitors if technology is not open as the competitor will not have access to the technology used in the production of the products and company will simply lose their investment in the technology and also has to compete with the firm that has the dominant design.company owning design has higher returns.

For the consumers dominant designs are beneficial if it outweighs the cost associated with a monopoly otherwise it will be harmful for the consumer.

Complementors gets advantage of dominant design by saving their resources and not wasting them for other platforms.

Suppliers could have pricing power reduced due to this if they do not own a monopoly so they has a disadvantage due to dominant design.