Blu-Ray and HD DVD: Betamax - VHS 'Format Wars' Redux?
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Abstract:
Sony, a leading multinational electronics company, had always been at the
forefront of technological innovation. However, in spite of its prowess in
research and development, some of the company's technologies failed to
become industry standards in the face of competition from technologies
developed by rival firms. The case starts with an analysis of the reasons
behind Sony's failure to establish its Betamax format as the industry
standard against the VHS technology developed by JVC. It then describes
Sony's contribution to the evolution of DVD technology, leading up to the
development of Blu-ray. The case compares the actions taken by Sony in the
1980s to promote its Betamax technology, with its current efforts to get Blu-ray
accepted as the standard.
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Issues:
» Recognize the importance of marketing and alliances in popularizing new
technologies » Understand the influence of market forces in the adoption of new technologies » Analyze the factors that delay or quicken the rate of diffusion of innovation » Compare and contrast the strategies adopted by a company at two different
points in time, to popularize its technology and products
Contents:
Keywords:
Blu-ray and HD-DVD, Betamax and VHS, Video format war, Strategic alliances
in the electronics industry, Diffusion of innovation, Sony and Blu-ray,
Technology adoption, Playstation 3 and Blu-ray, VAIO and Blu-ray
Blu-ray and HD DVD: Betamax - VHS 'Format Wars' Redux?
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