Asks that students take the point of view of Philips in 1979, after the technical development of the compact disc was full, but three years ago he was introduced commercially. At that time, the management company Philips had to decide whether to try to establish a standard CD through an alliance with another firm of consumer electronics. Raises questions concerning the costs and benefits of standardization, optimal prices for CD players and discs (including their complementarity), optimal pricing for durable goods, and the consequences of its own information about the exit strategy. It also requires analysis of several related industries, with a focus on investment opportunities in specific products of capital. "Hide
by Anita M. McGahan Source: Harvard Business School 17 pages. Publication Date: October 17, 1991. Prod. #: 792035-PDF-ENG
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