Why Is there a Need to Have Different Types of Formats for the Same?

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Why is there a need to have different types of formats for the same type of file (for example, a document can have a doc/PDF format, a music file can have an mp3/wav format)?

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Type on PDF: All You Need to Know

For example a compressed file might have 5 or 10 times the size of the uncompressed version. We use our own proprietary tools to extract and decode each format.  We create our own code for most encoding functions which allow encoding of the entire file.