Platform Envelopment

Essay specific features

 

Issue:

Business

 

Written by:

Teri M

 

Date added:

September 18, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 613

 

Was viewed:

9633 times

 

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Essay content:

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...
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We analyze conditions under which envelopment strategies are likely to succeed. Keywords: Platforms, network effects, bundling, two-sided markets, complements, convergence Platform-mediated networks encompass network users along with intermediaries who provide components and rules that facilitate users’ interactions (Gawer & Cusumano, 2002; Rochet & Tirole, 2003; Eisenmann, Parker & Van Alstyne, 2006; Evans & Schmalensee, 2007)...
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