The Stanford Graduate School of Business is highlighting the work of one of its professors
(Haim Mendelson), who is working on how proprietary software companies can be competitive with free software. "There are times, however, when the open source product gets to market first. In that case, the commercial vendor does well to enter the market with a compatible product and then invest in new product features to make its product compelling even though it costs morea strategy sometimes known as 'embrace and extend.' In this case, being open (or compatible) helps the commercial firm tap into the network created by the free product. Then, the commercial firm must compete by out-innovating the free product.
to post comments)