Increasing Product Complexity and Consensus Standard

Competitive advantages brought by standardization activities

Abstract

The purpose of this paper is to streamline the impact of standardization activities on each company. Triggered by the increasing complexity of the product system, consensus standards are coming play an important role for efficient R&D activities. In the tide of such this standardization, the existing leading companies to promote the standardization, to form a standard eco-system together with emerging companies, and thereby enjoy the benefits of standardization. On the other hand, the existing leading companies that do not promote the standardization could lose a competitive advantage, particularly in the case of the integral product, because it takes a great deal of switching cost for the implantation of the standard.