Envelopment Thomas Eisenmann Geoffrey
نویسندگان
چکیده
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 another’s market, combining its own functionality with the target’s in a multi-platform bundle. Dominant firms otherwise sheltered from entry by standalone rivals may be vulnerable to an adjacent platform provider’s envelopment attack. We analyze conditions under which envelopment strategies are likely to succeed.
منابع مشابه
Platform Envelopment Thomas Eisenmann Geoffrey Parker
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...
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