DT 3 Competition chapter 3

13 flashcards · Programming Languages · by Daniel F.

1. How did competition change with digital transformation

2. Definition of Platform businesses

   business that creates value by facilitating interactions must take place through and be facilitated by platform businesses direct interactions between critical distinction between a platform and a reseller or sales channel two or more distinct type of customers they have to be on different sides e.g. communication not platform

3. 4 Types of Platforms

   Exchanges marketplaces platform for two distinct groups of customers for a direct value exchange groups attracted by the number and quality from the other side e.g. real estate brokers, shopping mall Transaction system facilitate payments and financial transactions issuers of both credit and debit cards provide this service, linking together cardholders, merchants, and banks (PayPal and Apple Pay are based on the same model). transaction system must get sufficient numbers on board from each par…

4. Direct and Indirect Network Effects

   Direct (“same-side”) network effects increasing number of users -> increase in value or utility for that same type of user each additional user -> exponential increase in the number of potential connections that can be made in the network Indirect (“cross-side”) network effects increase in the number and quality of customers on one side -> increasing value for customers on the other side of the platform one way: like ad supported media two way: virtuous cycle

5. How Digital Impacts Platforms

   Frictionless acquisition users just sign up online Scalable growth scale using cloud On-demand access and speed users can access platforms from anywhere Trust social removes anonymity and makes interactions feel safer user acquisition speeds up using social networks

6. winner-take-all total consolidation

   Once a platform is widely established in its category, it is extremely hard to launch a direct challenger with a similar service using more than one platform is hard for the customer indirect network effect is strong feature differentiation low

7. Economic efficiency of platform businesses

   enable the efficient usage of distributed pockets of economic value (labor, assets, skills) that otherwise could not be effectively used

8. Competition Between Platforms businesses

   Network-added value: due to network effects, the platform with the most current customers is often the one most likely to draw future customers. Platform-added value: unique features and benefits that attract customers. Open standards: offering more-open and easier-to-uses standards that platforms’ competitors. Interaction tools: competing by providing the customers with the best tools to find and interact with the right partners. Trust enablers: Offering better methods to enable trust among th…

9. Tool: The platform Business Model map

   an analytic and visualization tool designed to identify all the critical parties in a platform and analyze where value creation and exchange take place among the different customers and with the platform business itself

10. Co-opetition

    effective strategy is sometimes for direct competitors to work together in certain areas digital transformation makes this faster

11. Disintermediation and Intermediation

    Disintermediation = cutting out the middlemad as a business Intermediation = putting in the middleman as a business

12. Tool: The Competitive Value Train

    analyze competition and leverage between a firm and its business partners, direct rivals, and asymmetric competitors mapping competition by mapping the supply chain and its element's substitutes principles power to the unique creator power to the ends

13. Channel conflict

    business is balancing both working with a key sales channel and going around it launch a direct-to-consumer channel in competition with their primary sales channel