Describe standardization, format wars, and how standardization can lead to a format war. Who can benefit from a format war and why

The answer is below

Explanation:

1. Standardization is a business term that describes producing firms sticks to industry standards or peculiar specialized standard in their production process. For example, Google setting a technical standard for search engines.

2. Format wars on the other hand, is a business term that describe the constant struggle between competitors to set technical standards for others to follow.

3. How standardization can lead to format wars: For example, over the years, Internet explorer have set technical standard for other browsers. However, with the rise in Google Chrome, many users are now considering Google Chrome over Internet Explorer, which has led to decline in the market share of Internet Explorer.

4. Who can benefit from a format wars and why?

i. It is both producers and consumers that benefits from the format wars

ii. The reason is that, format wars often leads to the following benefits: compatibility of products from different producers, reduction of confusion on consumer's mind, reduction in production cost, which translates to fair prices for consumers more units production for producers, less risk in production of complimentary goods for the producers

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