Three companies, Fast Forward, Ultra Entertainment, and LBS, are investing in developing Blu-ray players for a premium, enhanced media experience for customers. The three companies decided to work together, combining their technologies in order to avoid introducing competing and incompatible technology. What strategy did the companies use to establish their technology as a standard?

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Business

Gaven

28 March, 23:42

Three companies, Fast Forward, Ultra Entertainment, and LBS, are investing in developing Blu-ray players for a premium, enhanced media experience for customers. The three companies decided to work together, combining their technologies in order to avoid introducing competing and incompatible technology. What strategy did the companies use to establish their technology as a standard?

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Aniya Rocha · Answer 1

Cooperation with competitors.

Explanation:

The companies are direct competitors in a market that is fast-moving such as the Blu-Ray market. As a result, the companies have to introduce innovations and improve customer experience in order to stay afloat, otherwise, the customers will turn to the competition.

In this case, the competitors decided to cooperate: their goal is to bring about a product that is more innovative, and provides a better customer experience, as a result of the different inputs from each of the competing companies.