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A single product or process architecture that dominates a product category usually 50% or more of...

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? ( 5 marks)

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Answer:---------
Dominant designs
is 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.

Dominant designs beneficial for competitors, consumers, complementors, and suppliers:-----
For consumers:-------

YES: If the benefits accrued by consumers through widespread adoption of a technology outweighs the costs associated with a monopoly (e.g. higher prices, less product, variety, etc.)
NO: If the benefits accrued do not outweigh the costs.

For competitors:---------
Might be YES:
If the technology is “open” (not protected by intellectual property rights) or your firm is the owner of the technology that becomes the dominant design
NO: Firms that do not have their technology adopted lose their investment in their technology and also have to play catch up in order to compete with the firm that owns the dominant design.

For complementors and suppliers:------
YES:
A single dominant design is likely to the market uncertainty they face and the eliminates the cost of trying to support multiple competing technologies. Complementors can benefit from the establishment of a dominant design by not wasting resources developing for other platforms that do not thrive and from an expanded market for their products.
NO: A single dominant design is likely to reduce their power as suppliers.


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