Please enable JavaScript.
Coggle requires JavaScript to display documents.
G4-[PR]Ch10 Strategy: How Platform Change Competition (How platform…
G4-[PR]Ch10 Strategy: How Platform Change Competition
competition with tradition industries and
within the world of platform, between platform
companies
the successful case of Alibaba
the explosive growth of China's middle class
government-imposed restrictions
the strategic insights of CEO
how should they do
has compressed the whole middle layer of retail
allows companies around the world to source goods from China
incorporate the resources and connections of outside partners into the activities and capabilities of the platform.
strategic position
five forces model
the threat of new entrants to the market
the threat of substitute products or services
the bargaining power of customers
the bargaining power of suppliers
intensity of competitive rivalry in the industry
managed independently
resource-based view
effective barrier to entry
inimitable resource
the end of competition
hypercompetition
flexibility
create customer
moving managerial influence from inside to outside
complexity
platform against platform
e.g Sony Iphone
platform against partner
e.g Microsoft
partner against partner
How platform compete
Preventing Multihoming by limiting platform access
Multihoming
user engage on more than one platform
Flash V.S IOS
Alibaba V.S Baidu
Innovation & Capturing its value
Should seek to own the greatest value
Alibaba and Facebook own search on its platform rather than Baidu and Google
Microsoft owns Word, PowerPoint, and Excel
Leveraging the value of data
like new oil and contains a lot of truth
can be a source of enormous value to platform business
are used by well-run firm
are used by platform business to improve their
competitive performance
two ways
tactical data
to optimize particular tools
quite effective
features of the platform
strategic data
border in its scope
seeks to aid ecosystem optimization
creating
controlling
siphoning value
if don’t have data,can’t creat the value
Redefining mergers and acquisitions
suggests that business leaders should pursue targets
add complementary products
market access
subtract supply chain costs
platform manger need to adjust this strategy
two significant benefits
claiming portion of the value
keeping a partnership
platform envelopment
adjacent platform
multi-homing
indirectly provided by ecosystem partner
platform envelopment
abandon original platform
provide similar feature
RealNetwork invented first streaming audio
microsoft capture this market
over 90 percent in operating systeam
bundle the Window streaming audio
enhance platform design
facilitate interaction
remain competitive
match producers with consumers
pull in users
vimeo
greater bandwidth availability
create a specialized niche and high-end products
valuable viewer feedback
better hosting services
no obtrusive pre-roll ads
youtube
market-dominating rival
When advantage is sustainable:Winner-take-all markets
Special Forces
Strong network effects
Amazon, Netflix, LegalZoom and Nest do
Houghton Mifflin Hancourt, NBC, Lexis and Whirlpool do not have
High multihoming or switching costs
Android phone and Cell phone
Social networks like Facebook, LinkedIn
Microsoft
Supply economies of scale
Auto-industry in U.S
Lack of niche specialization
Windows, Apple, LinkedIn
Uber, Lyft