Strategic Standardization

Abstract

International standardization has become a strategic tool for global firms since new industrial policies emerged in developed countries in the 1980s, which allow firms to easily form a consortium to set industry-wide standards. This standardization has created many consensus standards that change the distribution of added value internationally, and has induced transformation in the international division of labor among the developed and developing countries. Platform business is most eminent in the resulting business ecosystem. It harnesses consensus standards to earn global competitive advantages, based on two practices: adjusting the scope of their knowledge and selecting new business partners who adopt the standards.

Keywords

• consensus standard
• antitrust law
• open and closed areas
• product architecture
• platform business