Standard-setting strategies in the multimedia sector

In many hi-tech sectors one of the most important competitive weapons is standardisation. It is particularly true in network markets where users would like to buy products compatible with those bought by others. Different processes may lead to standard setting. Sometimes there are fierce standardisation wars, whereas in other cases competitors are able to agree on a common standard before the introduction of a new technology on the market. Quite often a single firm is not able to adequately sponsor the adoption of its technology as a standard. Therefore, partners supporting the standard-setting process have to be found and collaborations have to be formed. In this paper, the reasons that may lead firms to co-operate or not cooperate are first analysed and then the different typologies of collaborations are described together with their motivations and critical success factors. Finally, the dynamic of the standard-setting process will be investigated and discussed. The paper is based on the study of ten cases in the multimedia sector.