Requests that the student’s perspective of Philips adopted in 1979, was completed by the technical development of the CD, but before it was introduced three years in the trade. At that time, Philips’ management to decide whether to try to establish a standard CD through an alliance with another company in the consumer electronics. Raises questions regarding the costs and benefits of standardization, optimal pricing of CD players and discs (due to their complementarity), optimal pricing of a durable good, a … Read more »

Requests that the student’s perspective of Philips adopted in 1979, was completed by the technical development of the CD, but before it was introduced three years in the trade. At that time, Philips’ management to decide whether to try to establish a standard CD through an alliance with another company in the consumer electronics. Raises questions regarding the costs and benefits of standardization, optimal pricing of CD players and discs (due to their complementarity), optimal pricing of a durable good, and the impact of proprietary information on market entry strategies. Also requires the analysis of several related industries, with special attention to the opportunities to invest in product-specific.
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Anita M. McGahan
Source: Harvard Business School
17 pages.
Publication Date: Oct 17, 1991. Prod #: 792035-PDF-ENG
Philips Compact Disc Introduction (A) HBR case solution

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