Matsushita licensed its VHS technology to rivals,while Sony kept its Beta technology proprietary.This action allowed Matsushita to
A) win the format war.
B) enter into an alliance with Sony.
C) earn marginally lower profits than Sony.
D) enjoy a laggard advantage.
E) bear switching costs better than Sony.

Question

Quizplus · Accepted Answer

By licensing its VHS technology to rivals, Matsushita ensured that VHS became the dominant format, winning the format war against Sony's Beta technology. This allowed Matsushita to gain a larger market share and higher profits.

Matsushita Licensed Its VHS Technology to Rivals,while Sony Kept Its