Format wars, in the context of high-technology industries, refer to:
A) battles to control the source of differentiation, and thus the value that the differentiation can create for the customer.
B) the confusion among customers that arises as a result of several choices of formats for PCs and other gadgets.
C) the price-based battles in the network of complementary products, which is a primary determinant of the demand for an industry's product.
D) conflicts within an organization about which format to adopt for their products.
E) price-based battles among companies producing similar products.

Question

Quizplus · Accepted Answer

Format wars refer to battles between companies competing to establish their technology as the dominant format in the market. The winner often gains a competitive advantage by controlling the source of differentiation, which can create value for the customer. This can lead to higher profits and market share. Examples of format wars include the VHS versus Betamax battle in the home video market and Blu-ray versus HD DVD in the high-definition video market.

Format Wars, in the Context of High-Technology Industries, Refer To