| In the age of network economy, the speed of technology innovation is picking up in the ICT industry, and the market environment that enterprises face is becoming complex. In order to survive and develop, more and more enterprises join in standards competitions. The ICT industry has an outstanding trait of network effects that most traditional industries don't exhibit yet. Network effects lead to some new phenomena emerging in the standards competition of ICT industry. The traditional economy theories can't explain those phenomena correctly. Thus, we must research the standards competition of ICT industry based on the theory of network effects.First, Network effects can change the outcome of standards competition. According to mainstream opinions, network effects will lead to the outcome of winner-take-all. But according to the research of this paper, the outcome of standards competition will also influenced by some other factors that include consumers' preference, local network effects and technology compatibility. Thus, in most situations, we will see the outcome of winner-take-most. This deduction has a stronger explanation to realities by remedying the conclusion of winner-take-all. Second, network effects will lead to the problem of path dependence in the process of standards competition. Network effects are most decisive factors that cause the path dependence and will lead to the inefficiency of market. However, the path dependence is relative and can be broken by some ways.Because of the existing of network effects, enterprises must take some strategetic activities for becoming winner in the standards competition. Strategetic pricing, establishing standard alliances, preemptive strike, product preannouncement and consumer lock-in are used by enterprises frequently. Furthermore, the influence of network effects can be amplified by relaxing protection of Intellectual Property. The strict protection of IP is not an optimized decision on some conditions.
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