Skip to main content
×
Home
    • Aa
    • Aa

Strategic Maneuvering and Mass-Market Dynamics: The Triumph of VHS over Beta

  • Michael A. Cusumano (a1), Yiorgos Mylonadis (a2) and Richard S. Rosenbloom (a3)
Abstract

This article deals with the diffusion and standardization rivalry between two similar but incompatible formats for home videocassette recorders (VCRs): the Betamax, introduced in 1975 by the Sony Corporation, and the VHS (Video Home System), introduced in 1976 by the Victor Company of Japan (Japan Victor or JVC). Despite being first to the home market, the Beta format fell behind the VHS in market share during 1978 and declined thereafter. By the end of the 1980s, Sony and its partners had ceased producing Beta models. This study analyzes the history of this rivalry and examines its context—a mass consumer market with a dynamic standardization process subject to “bandwagon” effects that took years to unfold and that were largely shaped by the strategic maneuvering of the VHS producers.

Copyright
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

Marvin B. Lieberman and David B. Montgomery , “First–Mover Advantages,” Strategic Management Journal 9 (1988): 4158

Richard N. Foster , Innovation: The Attacker's Advantage (New York, 1986)

M. L. Katz and C. Shapiro , “Technology Adoption in the Presence of Network Externalities,” Journal of Political Economy 94 (1986): 822–41

Kim B. Clark , “The Interaction of Design Hierarchies and Market Concepts in Technological Evolution,” Research Policy 14 (1985): 235–51

Rebecca M. Henderson and Kim B. Clark , “Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms,” Administrative Science Quarterly 35 (1990): 930

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Business History Review
  • ISSN: 0007-6805
  • EISSN: 2044-768X
  • URL: /core/journals/business-history-review
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 40 *
Loading metrics...

Abstract views

Total abstract views: 1057 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 21st September 2017. This data will be updated every 24 hours.