When two or more companies compete with each other to get their technology adopted as a standard in an industry, and when network effects and positive feedback loops are important, the company that wins the format war will be the one whose strategy best exploits positive feedback loops.

Question

Quizplus · Accepted Answer

This statement is true as positive feedback loops can lead to a self-reinforcing cycle that strengthens the dominant technology's position in the market, making it difficult for competing technologies to gain traction. Therefore, the company that can best utilize positive feedback loops to gain a network effect will likely win the format war.

When Two or More Companies Compete with Each Other to Get