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Achieving business model innovation over time -On the basis of IAC and Travelzoo-

Le, Quynhtrang (2017) Achieving business model innovation over time -On the basis of IAC and Travelzoo-.

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Abstract:Digital platform industries are known for rapid changes due to the emergence of technologies and entering of new companies. Next to this, large platform companies, such as Google, Amazon and Facebook dominate the market, making it difficult for other enterprises to enter it. In order to grow and adapt to the fast and unstable environment, firms started to introduce innovations and changes to its model. Envelopment is known as one key aspect that makes innovation happen. Eisenmann proposed to recombine and bundle valuable resources from another platform with its own in order to form a supra-platform (2010). Furthermore, his envelopment typology distinguishes between three different types of envelopment: ‘Complement (I)’, ‘Weak Substitutes (II)’ and ‘Unrelated Platforms (III)’. However, long-term success and time designation has not been investigated on, making it difficult for industries to apply this typology. Hence, this study focuses on answering how business models innovate over time by examining Travelzoo and IAC and its product introduction over the time of 2006-2011. Thereby, two envelopment types were focused on, possibly leading to one company outperforming the other one in the long-term. However, during the timespan of these five years, both companies are making a steady growth in revenue, making it difficult to state, which one has a higher growth. However, due to applying Eisenmann’s typology and the Platform Envelopment Lifecycle Matrix (+ an updated version), which displays how to employ envelopment over time in order to achieve growth, a tendency can be noticed. This paper aims at providing strategic directives for envelopment and long-term growth in the digital market, in hope of contributing to the platform industry
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/72859
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