Can firms challenge critical mass in multi-sided platform markets?

I came across this nicely written piece about platform markets – “From Netscape to eHarmony: The High Risks and Big Rewards of Platform Markets” on http://strategy-business.com Technology eco-systems are common in markets with multi-sided business models – For e.g the smartphone app-store connecting developers & phone-users, online-marketplace & storefronts connecting buyers & sellers. The article introduces the term ‘tipping point’ – an alternate representation of a critical mass of users needed to create positive network effects. An interesting question raised herein is: How can you identify a platform market that is attractive to enter, and under which conditions is it appealing? Defining the...

mPOS: Addressing new customer segments! A case of blue-ocean strategy!

In an attempt to better understand and apply the blue-ocean strategy, I decided to test the framework on a rapidly evolving market – the payment’s industry. The solutions in the payments industry can be broadly classified into categories: those addressing emerging economies and those addressing developed economies. It naturally follows that the value propositions of the payments solutions in these two segments are quite apart and hence the associated value networks differ as well. Here, I take a look at the developed economy market and specifically into a trend that has attracted several firms – mobile point of sale (mPOS). In its...

The Fit for Growth℠ approach & Business Model Innovation

This post is based on my reading of “A Fit for GrowthSM Framework for Telecom Operators: Aligning Capabilities, Costs, and Structure” by Martin Reitenspiess, Christine Rupp, Hannes Gmelin, and Chady Smayra, via Booz & Co. It is an attempt to reconstruct the proposal made in the publication by drawing analogies to other pieces of work. This publication (from April 2013) from Booz & Co proposes a “Fit for Growth” framework to transition from price-based competition strategy to differentiation strategy. Not surprisingly the industry in question, Telecom, is industry characterized by the following observations: Stagnating market due to saturation of primary revenue sources Declining margins accompanied...

P&G: A case for Strategic Innovation

This blog entry by Ken Favaro on strategy+business shares an insight into how P&G has done well not only in product innovation in the past, but has also demonstrated the ability to innovate in its business functions. The article puts forth the need for more strategic innovation – or business model innovation, if I may dare to say so -for P&G to unleash the next wave of growth. Click here for the article: Does P&G Need Product Innovation or Strategic Innovation?