The outcome of format wars to control the source and customer value of differentiation can ultimately affect the profitability and survival of a company.

Question

Quizplus · Accepted Answer

Format wars can lead to significant losses for a company, as seen in the case of Toshiba's HD DVD format losing to Sony's Blu-ray format. The winner of the format war gains control over the market and can reap the benefits of customer loyalty and differentiation, while the loser may struggle to survive. Therefore, the outcome of format wars can have a significant impact on a company's profitability and survival.

The Outcome of Format Wars to Control the Source and Customer