In: Computer Science
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)
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.