Article Review Session

7/27/2019 Article Review Session

1/15

ARTICLE REVIEWSESSION

By

K.M.SUMANTHT.P.S (MARKETING)

T21022

1-14


2/15

WHATS YOUR GOOGLESTRATEGY

BY

Andrei HaiguDavid B. Yoffie

April 2009

2-14


3/15

Andrei Haigu :Andrei is

an Associate Professor inthe Strategy group atHarvard Business School.

David B. Yoffie : is theMax and Doris Starr

Professor of International

Business Administrationat Harvard BusinessSchool.

3-14


4/15

VS

4-14


5/15

Multisided Platforms

An MSP is both a platform and anintermediary.

MSPs can insert themselves between Company

and its customers. They dont take ownership of the goods and

services they facilitate the sale.

MSPs support players that are interdependent.

6-14


6/15

Intermediaries

Individual or firm such as an agent ,

distributor,wholesaler,retailer that

links producers to otherintermediaries or the ultimate buyer.

5-14


7/15

Pure Market intermediaries

Pure market intermediaries are firms that

make a living by reducing search and

transactions costs for two or more distinct

groups of players. These firms generally take

full possession or control of the goods .

7-14


8/15

Pure Platforms

Platforms are products, services, or

technologies that serve as foundations on

which other parties can build complementary

products, services, or technologies. Pure

platforms do not have any contact with players

customers.

8-14


9/15

First, decide whether to play with an existingMSP, build your own platform, or do both.

If you conclude that a third-party MSP canbenefi t your business determine whether yourcompany should join one or many.

which features or services you should adoptand which you should reject in order tomaintain your competitive advantage.

9-14


10/15

To Play or Not to Play?

Does the multisided platform require exclusivity, or can we play

on multiple MSPs?

What are the risks that an MSP will use its power against us tocapture more value for itself?

Can existing MSPs add value to our business by lowering our costs

or increasing our customer reach at a reasonable price?

What are the risks that an MSP will use its power against us to

capture more value for itself?

10-14


11/15

12-14


12/15

Where to Play?

Does the multisided platform requireexclusivity, or can we play on multiple MSPs?

How does the increase in customer reach from

playing on multiple MSPs ?

Can we extract extra compensation from an

MSP if we go exclusive?

11-14


13/15

How to play?

Which services or features of the multisided

platform will enhance our differentiation and

which will commoditize our business?

How do the MSPs terms affect our competitive

advantage relative to other players on the MSP?

Do the terms strengthen the MSPs ability to hold

us up?

13-14


14/15

Conclusion

Companies should think twice before they join

a popular platform. And should remember that

MSPs are moving targets and regularly review

company's strategy.

If the companies play really well on an MSP,

they may even be able to dictate the rules of

the game.

14-14


15/15

THAN Q !

Documents

Article Review Session