M5 Assignment: Standards War
M5 Assignment: Standards War
Up to this point in the course we have been focusing on the economic issues that are relevant to information technology and a networked economy. In this final module, we’ll build on this foundation to examine the strategies firms use to compete in a networked market. There are two general classifications of strategies: openness strategies (which are based on cooperation with allies) and control strategies (which are based not on cooperation, but on competing, incompatibilities).
Which class of strategy does establishing standards fall into? The answer is, “it depends.” Using home automation as the live case, you will look at standards as both as an openness and a control strategy.
Upon successful completion of this module, you will be able to:
identify different strategies for competing effectively in networked markets
explore the various meanings of “open”
apply conceptual analysis to the real world
analyze a live case using the theoretical framework
Please read and use quotes from:
· M5 Reading Notes for Discussion (attached)
· Shapiro, C., & Varian, H.R. (1999). Information Rules: A Strategic Guide to the Network Economy. Boston, MA: Harvard Business Press
Chapters 1 – 9
Review particularly the “lessons” at the end of the chapters
Instructions
For this final project, you will have the opportunity to integrate everything that has been covered this term and apply it to a standards war that is currently underway. PLEASE focus on the ECONOMIC strategies firms use to compete in a networked market relevant to information technology and a networked economy discussed throught this course.
Step 1. What have you learned in this course?
Review the learning objectives for each of the course modules and the lessons located at the end of the chapters in Information Rules to help you develop the list of issues to look for. Do this before you begin your research. You will need to be thinking like an economist as you do your research on the autonomous vehicle ecosystem.
Step 2. Gather information
What are the various components of the AV ecosystem?
Think about the cars: what makes them autonomous? What’s fixed and what can be changed (and how)?
Think beyond the vehicles. What changes need to be made to infrastructure? Laws? Insurance?
Who are the various players/stakeholders? What power do they have?
Step 3. Report, Analyze, Relate to Readings
Report what you found and interpret your findings based on the economic concepts and ideas covered in this course.
Describe the current situation. You should include a brief description of a few of the major contenders in the market.
Are concepts from previous modules applicable? If so, be sure to include that analysis.
Analyze and explain the strategies being used by the various contenders using the frameworks developed in Shapiro and Varian.
Speculate about how this standards war might be resolved. Use economic theory and concepts to justify your prediction. Obviously, there’s no right or wrong answer to your prediction, so this final paper will be evaluated on the basis of how well you:
research and explain the products being developed
research the players and their stake in these products
analyze the alliances and their strategies
base your conclusion on your analysis and evidence
tie your analysis and conclusions to the readings
Notes about submissions:
Students frequently ask me how long this assignment should be—it depends on your writing style, but the range for most students will be five to ten pages. What I’m looking for is an analysis in which you draw conclusions, based on your observations and supported by the economic readings.
Be sure to cite your sources (including readings and classmates) if you use any ideas from others (whether you’re directly quoting them or not).
Make sure that your name is on your paper someplace!
Assignments should be single-spaced and left justified (both are the default settings).
Paper Format: APA
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