Strategic analysis of the impact of a powerful new industry entrant on an open standards-based company's business

Google Earth is an increasingly popular geospatial application that lets users create, share and visualise maps in Google's proprietary Keyhole Mark-Up Language (KML). KML is similar to but incompatible with Open Geospatial Consortium's (OW) open standard Geography Mark- Up Language (GML). This project aims to determine the best strategic response to the impact that KML may have on a company, Galdos Systems, whose business is based on OGC standards. The current situation is analysed on three levels: the Geographic lnformation Systems (GIs) industry, the OGC-related industry segment, and the firm. In addition, an application ofthe theories on diffusion of innovation and economics of technology standards assesses the potential of KML to substitute for GML. The analysis concludes that KML is not a threat to Galdos, and that Galdos should treat KML as an opportunity to be approached using real-options reasoning and within the context of their current strategy.