But, forming an alliance with another firm could make your chances of setting a standard exponentially easier. The key is identifying your natural allies, firms that compliment your products or services and have similar goals. Be aware that some firms may not welcome standards, be it an older technology they own or whatnot, and these firms need to be avoided. Also be aware that there is a formal standard setting process, comprised of official bodies, that firms in network industries should be know about. These firms do not have to be apart of the formal standards process, but merely showing up at a standards meeting could protect your interests.
Standards tend to expand network effects, reduce uncertainty, and reduce consumer lock-in.
Standards shift the battle to a long-term struggle for market share. They are favored by most consumers and complimentors, but are opposed by owners of incumbent technology. Standards are important in technology sectors, because they welcome consumers by limiting the threat of being stranded with an inferior product. This increases the whole market share and shifts the demand curve out. The University of Oklahoma explicitly disclaims any legal liability for the contents of this page or information accessible from this page.