Increasingly, the success of products depends on compatibility standards. Computers need software, discs or tapes need and are needed by players, credit cards need retailers willing to accept them. Analysis of the strategies of winners and losers in major standards wars—such as those in video cassette recorders and personal computers—reveals some general lessons. The key elements are the rapid creation of a large installed base and the credibility of the standard and the introducer. Product quality is rarely crucial. Competition by technical development of the product, step by step product introduction, and reliance on acceptance by national and international standards bodies are also frequently ineffective. There are obvious lessons for current standards wars, such as those in mobile communications and satellite broadcast