Cennamo and Santalo (2013) "Platform Competition: Strategic Trade-offs in Platform Markets
24 important questions on Cennamo and Santalo (2013) "Platform Competition: Strategic Trade-offs in Platform Markets
Wherefore do multisided markets emerge?
Why is platform competition the concept of network effects, wherein consumers place a higher value on platforms with a large number of users?
What is a winner-take-all (WTA) outcome?
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Where does a 'get-big-fast' strategy compel platform firms to?
- Rapidly acquire and grow their platform's installed base of users
- Lock in those users
- Undermine the ability of rival platforms to do the same
On which two popular growth strategies identified by the WTA literature do the authors focus on?
- Stimulating competition among complementary goods providers ensure that a larger variety of platform applications are developed
- Outperforming rivals by securing a larger number of populair applications in exclusivity deals
What is apps market competition (AMC)?
What is apps market competition?
How can platform providers influence the degree of AMC?
- Licensing policies
- Technical support for development programming
- Use of 'soft power'inducements
Which influence does a large installed base have?
When does the product life cycle becomes shorter?
What is one of the main reasons for both users and producers to decide to transact on one platform?
What does a high level of AMC increase/lower?
What does apps exclusivity capture?
What is the primary objective of apps exclusivity?
How can exclusivity ehance a system's competitive position?
How might a platform reduce its competitors' effective participation in the content and consumer market?
What might facilitate enhanced coordination over the timing and releases and on the type of quality of content an application producer develops?
Why should platforms encourage high levels of AMC?
How should the potential trade-offs in a hybrid approach be assessed?
What is meant with the choice of distinctive positioning?
What can be the consequences when firms with similar content offerings fight over the same set of resources and customers?
What is the risk for firms that choose an intermedia postion?
What is the risk of firms offering high distinctiveness?
Why is a U-shaped relationship between distinctive positioning and platform performance suggested?
Though risky, a platform that embraces a high degree of distinctive positioning has the potential to accrue higher performance effects than a platform that chooses an intermediate degree of distinctive positioning
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