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Module Note
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2007
Managing Networked Businesses: Platform Evolution Module
by
Thomas R. Eisenmann
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Abstract
Offers an overview of conceptual content and pedagogical guidance for instructors using a six-session module, "Platform Evolution," from "Managing Networked Businesses" (MNB), a case-based MBA elective course on platform-mediated networks. The module explores the competitive dynamics of platform evolution and the management challenges that it poses, with a focus on three strategies: envelopment, interoperability, and licensing. With envelopment, one platform provider enters another's market with a multi-platform bundle, potentially seizing platform leadership from its target. With interoperability, previously incompatible but well established rivals relax restrictions on cross-platform transactions. With licensing, a firm that formerly served as sole source of platform goods and services licenses additional providers to harness their innovation and marketing capabilities.
Keywords: Business Ventures;
Networks;
Business or Company Management;
Rights;
Business Strategy;
Problems and Challenges;
Multi-Sided Platforms;
Market Transactions;
Innovation and Invention;
Marketing;
Competition;
Market Entry and Exit;