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A tale of contend and conquest : leveraging market presence to grow the ICT-ecosystem : lessons learned from Google and Yahoo (2006 - 2011)

Müller, Christopher (2015) A tale of contend and conquest : leveraging market presence to grow the ICT-ecosystem : lessons learned from Google and Yahoo (2006 - 2011).

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Abstract:How do large platform companies in the ICT market innovate their business model over time? The pace of growth and innovation of digital platform players such as Google, Facebook or Amazon astonishes communities of researches and practitioners likewise. This paper aims to shed light on the growth trajectories of large players in the two-sided ICT market in which envelopment is assumed to play a vital role. Fellow scientists identified three types of envelopment bestirring such unique industry dynamics yet leaving it unclear how different types of envelopment may be utilised in order to effectuate the augmentation of their respective ICT ecosystem. Neither the existence nor the effectiveness of long-term envelopment schemes have previously been scholarly investigated. Scrutinising envelopment patterns of Google and Yahoo from 2006 to 2011 by analysing their newly launched value propositions has uncovered an envelopment typology comprising two opposing strategies that result in success and failure, respectively. Such typology enabled to derive a matrix that helps to illustrate the envelopment of Google and Yahoo as well as to provide strategic directives for growth and envelopment in the ICT market. ‘Winner-takes-it-all’ dynamics hold true only partially. To ‘get big fast’ does not entirely cut it. This paper’s contribution lies in the instructions of ‘how to get big, fast’ and – particularly – sustainable.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/67860
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