Core Disciplines: Developed Markets / Advanced Economies; International Business; Strategy & Management
DESCRIPTION: Sony and Toshiba, the developers of the high definition DVD format Blu-ray and HD DVD, respectively, were in a high profile standard war for the next generation video format. Both had formed alliances in order to drive greater and faster market acceptance. After six years of battling, however, Sony prevailed. This case explores the conflict between Sony and Toshiba and how Sony eventually won.
TEACHING POINTS: After discussing this case study, students will be able to: Understand the determinants to forming alliance constellations and how they can be a source of competitive advantage. Understand the conflict between Sony and Toshiba and the need to form alliances to set technological standards. Consider the diverging and converging interests of the various alliance partners to Sony and Toshiba. Give a recommendation to Sony about going forward and evaluate what Toshiba could have done differently: What steps should Sony take to best utilize its victory? What could Toshiba have done to avoid defeat (if anything)?
Secondary Tags: Consumer Products
Sales Rank: #307
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