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> Standardization tends to be about bigger companies trying to commodify their competitors. Didn't you mean to commodity their complements? Like when Microsoft
by giovannibonetti 2y ago
> Standardization tends to be about bigger companies trying to commodify their competitors.
Didn't you mean to commodity their complements? Like when Microsoft (software company) commoditied the hardware on top of where their OS ran.
- mike_hearn 2y agoNo, I meant commodify their competitors. Big company has moved up the value chain and doesn't want others following them, so they standardize the tech at the level below. Now competitors are all implementing the standard and thus can't get an edge over each other, so they end up driving margins to zero via price competition and have nothing left over for innovation, whilst simultaneously reducing the bigger firm's cost by turning the lower levels they still rely on into a commodity.