Question

Why are standards so important in high-tech industries? What are the competitive implications of this?

Answer 1

Standard are everywhere and play an important role in the economy.standard provide safety and reliability.when product is made as per standard then it increase consumer confidence.it increases sales and promote growth of the company.it grows technology acceptance.its support government policy and legislative .it is beneficial for business .it increases compatibility and interoperability.standard provide the fundamental buliding block for product development.

Compatibility is biggest reason standard are important in many high tech industries.competitive implications are that if a company has ownership of one of these standards then it can be a source of competitive advantage for them.companies fight over standards to determine which company will emerge the market leaders and dictate the Direction of other businesses.