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Study Based On The Standard Competitive Model Of The Network Effect

Posted on:2005-03-04Degree:DoctorType:Dissertation
Country:ChinaCandidate:B LiFull Text:PDF
GTID:1116360122487353Subject:Engineering and Engineering Management
Abstract/Summary:PDF Full Text Request
In the e-epoch, with a faster technological innovation, deepening market internationalization and globalization, a company is confronted with a more and more complicated and variable environment. How to put forward its own new technology, occupy more extensive and maintain sustainable competitive advantages, is a urgent problem to be solved by the company in such an environment. Normal competitive instruments are helpful but not very effective, and more companies thereby choose the standard, the fight over which is the theme of modern competition between them.Standard is a series of technological specification, no matter universally accepted or generated from a formal protocol, to be observed by companies. The definition of standard includes three basic components: the object to be targeted, its content and its layers. Standard is a instrument by which the convertibility, the inter-operational, the compatibility and the smoothness in mobility between different products can be fulfilled. From the perspective of ownership, the standard can be divided into two sub-standards, namely, de jure standard and de facto standard, the latter of which can also be divided into ordinary de facto standard and forum standard. There are two ways to show the relationship of standard and technology as follow: on the one hand, standard is embedded into technology, thereby being its component; on the other hand, standard is higher and more authoritative than technology. What is similar between them is that both are the important components of social productive force, and therefore both belong to the same technical field. Conversely, their difference can be shown in their different working scope, objects to be pursued, and the different manner of using. In the same technological age, standard shows some trends to converge, while in different ages, it shows the feature of evolving.Network, composed of many nodes which are mutually complementary, can provide a node group with new functions which a single node can't supply. There are two ways to show the relationship between network between network and its nodes as follow : on the one hand, the function of nodes depend on the network; on the other hand, the function of network also need the nodes. There are also two ways to show the relationship between different nodes of network as follow: on the one hand, the function of a node depend on the cooperation of other nodes, which means they are mutually complementary; on the other hand, in a complicated network some nodes can be replaced by other nodes, which means they are replaceable between each other. There are two basic kinds of network, according to whether there is any concrete material link, namely, the tangible network and the intangible network.In modern economy, there are many products (clients) in the network, and some of them exist in the tangible network, while more of them are located in the intangible virtual network. Although the characteristics of virtual network is not as obvious as that of physical network, but its influence on the market dynamics and competitive strategies isn't second to that of physicalnetwork. Whether it is possible to form a network between different products depends not only on the functional factors , but also on the technical factors. It is also inadequate to form a network when different products is functionally mutual - complementary, because they should also be technologically compatible. Standard sets the scope of the network. If a company controls the standard, it also thereby controls the whole network. If a manufacturer controls a large network, he also control the market. The market can be many different structures according to the degree to which the standard is controlled. If no one control the network, then it may be in the free market because many entrants can crowd in; if only a few control the network, it may be oligarchy; if one company control the network, it may be monopoly.When manufacturers compete with each other based on the different network, the competi...
Keywords/Search Tags:Network, Network Effects, Standard, Competition
PDF Full Text Request
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