The System Lock-In position represents the strongest form of bonding and demands that the business addresses the overall architecture of the system. Instead of focusing solely on the product or the customer, we are now concerned with all the important players in the system that contribute to the creation of economic value for a particular customer. Besides the normal industry participants — buyers, suppliers, channels, and potential new entrants — we are especially concerned with nytrturing, attracting, and retaining ‘complementors.’1 A complementor is not a competitor, or necessarily a supplier; it is a provider of products and services that enhance, directly or indirectly, our own offering. Examples of complementor pairings include computer manufacturers and software producers, high fidelity equipment manufacturers and CD retailers, and video cassette recorders and movie studios.
- Distribution Channel
- Real Network
- Content Creator
- Shelf Space
- Memory Chip
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The concept of complementors has been introduced by Adam M. Brandenburger and Barry J. Nalebuff, Co-opetition (NewYork: Doubleday, I 996).
Dan Steere, ‘Intel Corporation (D): Microprocessors at the Crossroads’, Graduate School of Business, Stanford University Case BP-256D, Exhibit 8, p. 24. May 1993.
Patricia Sellers, ‘How Coke is Kicking Pepsi’s Can’, Fortune, October 28, 1996.
Michael Cusumano, Y. Mylonadis, and R. Rosenbloom, ‘Strategic maneuvering and massmarket dynamics: the triumph of VHS over Beta’, Business History Review, vol. 66, Spring 1992, pp. 5 I-94.
Roger Enrico, The Other Guy Blinked and Other Dispatches from the Cola Wars (New York: Bantam Books, 1988).
© 2001 Arnoldo C. Hax and Dean L.Wilde II
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Hax, A.C., Wilde, D.L. (2001). System Lock-In: Winning through Complementors. In: The Delta Project. Palgrave Macmillan, London. https://doi.org/10.1057/9780230288089_6
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-42736-9
Online ISBN: 978-0-230-28808-9