Platform Envelopment Thomas Eisenmann Geoffrey Parker
نویسندگان
چکیده
Due to network effects and switching costs in platform markets, entrants generally must offer revolutionary functionality. We explore a second entry path that does not rely upon Schumpeterian innovation: platform envelopment. Through envelopment, a provider in one platform market can enter another platform market, combining its own functionality with the target’s in a multi-platform bundle that leverages shared user relationships. We build upon the traditional view of bundling for economies of scope and price discrimination and extend this view to include the strategic management of a firm's user network. Envelopers capture share by foreclosing an incumbent’s access to users; in doing so, they harness the network effects that previously had protected the incumbent. We present a typology of envelopment attacks based on whether platform pairs are complements, weak substitutes or functionally unrelated, and we analyze conditions under which these attack types are likely to succeed.
منابع مشابه
Envelopment Thomas Eisenmann Geoffrey
Due to network effects and switching costs, platform providers often become entrenched. To dislodge them, entrants generally must offer revolutionary products. We explore a second path to platform leadership change that does not rely on Schumpeterian creative destruction: platform envelopment. By leveraging common components and shared user relationships, one platform provider can move into ano...
متن کاملPlatform Networks – Core Concepts Executive Summary ( May 6 , 2007 ) Paper 232 Thomas Eisenmann Geoffrey Parker
متن کامل
Opening Platforms: How, When and Why?
Platform-mediated networks encompass several distinct types of participants, including end users, complementors, platform providers who facilitate users’ access to complements, and sponsors who develop platform technologies. Each of these roles can be opened—that is, structured to encourage participation—or closed. This paper reviews factors that motivate decisions to open or close mature platf...
متن کاملTHE PERSIANS. LOST CIVILIZATIONS Geoffrey Parker and Brenda Parker, Reaktion Book, 2017, 208 pages
متن کامل
Managing Platform Ecosystems
We examine how control over a technology platform can increase profits and innovation. By choosing how much to open and when to bundle enhancements, platform sponsors can influence choices of ecosystem partners. Platform openness invites developer participation but sacrifices direct sales. Bundling enhancements early drives developers away but bundling late delays platform growth. Ironically, d...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2010