In industries characterized by network externalities, self-reinforcing effects of the installed base and the availability of related products may result in one (or more) companies (s) control of almost all of the market share in the product category. The new player can try to shift the current standard introduction to radically improve the technology - the "jump" of this generation. However, the technological edge itself is often not enough. To lure customers from the existing standards, new technologies must somehow provide more value than the cost of the combination of functionality provided by existing technology, installed base and complementary goods. This paper develops a multi-dimensional framework of technological components of the value and apply it to the case studies of three generations of competition in the video gaming industry dollars. Presents a potential competitor strategies can be used to jump over the current success and strategy can be used to defend its position. "Hide
by Melissa A. Schilling Source: California Management Review 28 pages. Publication Date: April 1, 2003. Prod. #: CMR253-PDF-ENG
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