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Overcoming a Standard Bearer: Challenges to NEC's Personal Computer in Japan

Author

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  • David Thomas Methe

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

In this paper we examine the process by which a standard bearer loses its leading position in a market. We put forth a framework of four factors needed to overturn existing standard bearers, including superior price/performance competition in the context of network externalities, the ability of the standard bearer to adopt new technologies, the strength of proprietary rights of the existing standard, and competitor's willingness and ability to challenge the standard bearer. We use this framework to examine three types of failed challenges to NEC's position as the standard bearer in the Japanese personal computer market, along with a recent attempt that appear more likely to succeed.

Suggested Citation

  • David Thomas Methe, 1998. "Overcoming a Standard Bearer: Challenges to NEC's Personal Computer in Japan," Discussion Paper Series 90, Research Institute for Economics & Business Administration, Kobe University.
  • Handle: RePEc:kob:dpaper:90
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    Cited by:

    1. Funk, Jeffrey L. & Methe, David T., 2001. "Market- and committee-based mechanisms in the creation and diffusion of global industry standards: the case of mobile communication," Research Policy, Elsevier, vol. 30(4), pages 589-610, April.

    More about this item

    Keywords

    Computers; Technology;

    JEL classification:

    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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