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Battle of technology - Essay Example

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Technology dominance can give any organization a competitive edge over its competitors. Organizations are always striving to win the dominance battle to secure their future success. A number of factors can lead to an organization winning the dominance battle. …
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Battle of technology
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Battle of technology

Download file to see previous pages... In the current business world, technology is increasingly becoming live blood for organization. This is especially more common in organizations that deal with electronics and electronic accessories. Consumers wish to buy products that offer them the highest level of satisfaction. For instance, in the case of movies, consumers will go for the movie technology that produces the clearest pictures as compared to others. This has resulted to battle of battle of dominance between Blu-Ray and HD-DVD. Each one of them wants to dominate the market with their video formats.
This paper is a case that focuses on how Blu-Ray uses various dimensions so as to influence consumers, retailers as well as movie produces to use its technology. It also focuses on the various ways that a firm can apply to increase its overall value of technology in order to become a dominant design. This will be applied to Blu-Ray producer. This case is to be answered in two questions.
Q1). In the Blu-Ray case (Chapter 4, Schilling 2010), using the multiple dimension of value framework, what factor or factors do you think influenced whether a) Consumers, b) retailers, and c) movie producers supported Blu-Ray versus HD-DVD? Technology has been advancing constantly over the last couple of years (Tsai, 2002). Firms and organizations have been battling to achieve the best technology so as to dominate the market. It is imperative to note that technology has the capability to achieve dominance for an organization (Pohle, 1990). This is important especially when there is more than one battling rival technologies. Battle of dominance has been evidenced in industries that deal with high technology products. Among them, there included those dealing with computer Operating Systems, High Definition TVs, internet browsers, modems as well as the battle between Blu-Ray and HD-DVD. For an organization to achieve dominance, it has to follow the steps in the process of dominance. Dominance occurs in five stages. Once an organization is through the stages, customers will be willing to buy its products over those of the competitor. Consumers are always willing to buy a product that gives them more satisfaction at a price that they are willing to pay. The battle between Blu-Ray versus HD-DVD can be traced back to the year 2003 and went on to the year 2008 (Schilling, 2010). It was between Sony and Toshiba who were all willing to control the next generation video format. While Sony supported the technology called Blu-Ray, Toshiba supported HD-DVD. Both companies had their own backing of companies who supported their technology. Similarly, each of them had its own value framework and factors that influenced customers, retailers and movie producers to either support Blu-Ray or HD-DVD. Using the multiple dimension of value framework, the factors that led to Blu-Ray winning the dominance battle can be discussed as follows. Blu-Ray was able to win the trust of customers because it produced players that were compatible with all movies. The companies used video games to promote the standards of their technology. Sony incorporated Blu-Ray in its PlayStation 3. On the other hand, HD-DVD was only available as Microsoft’s Xbox 360 optional add-on drive (Schilling 2010). These Blu-Ray standards were winning, and most retailers and customers as well as movie producers defected from HD-DVD to Blu-Ray DVDs. Blu-Ray won the market to the extent that Toshiba’s CEO had to concede defeat and announced that the company would not produce HD-DVD players any more. This factor by Blu-Ray can be referred to as expectation management. It is a factor whereby Sony was able to meet the expectations of its customers. Other factors that can be attributed to Sony’s win are the ability of the company to take advantage of the information available both internally and externally successfully and assimilate it (Cohen and Levinthal, 1990). The company was able to apply the external information it had to ...Download file to see next pagesRead More
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