Competitive strategies in the high definition dvd market

Abstract

The aim of the paper is to provide guidelines for strategic decision making in companies involved in wars of standards within industries that exhibit network externalities, focusing mainly in outcome of the high definition DVD market war (between DVD-HD, from Toshiba and Blue-Ray, from Sony). The conclusions have been extracted from an empirical analysis of the war of standards between Betamax and VHS, that use a system of differential equations as a modeling tool.