Article Review Session
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Transcript of Article Review Session
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7/27/2019 Article Review Session
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ARTICLE REVIEWSESSION
By
K.M.SUMANTHT.P.S (MARKETING)
T21022
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WHATS YOUR GOOGLESTRATEGY
BY
Andrei HaiguDavid B. Yoffie
April 2009
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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.
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VS
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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.
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Intermediaries
Individual or firm such as an agent ,
distributor,wholesaler,retailer that
links producers to otherintermediaries or the ultimate buyer.
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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 .
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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.
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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.
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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?
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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?
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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?
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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.
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THAN Q !