Platform Strategy & Open Business Models - MIT

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Should Apple have openedthe iPhone?Most firms can onlyconcentrate on mostvaluable appsProfits increase whenothers add to platform’s“Long Tail”Of Course! It has video, wifi, camera (scanner), accelerometer, mobile, MP3,web browsing, etc. <strong>Platform</strong>s benefit from broad contributions.But control the top several complements.
Which applications to absorb?Apps offered by<strong>Platform</strong> SponsorApps offered byDevelopersRule 1: Absorb the highest value applications from the ecosystem. This addsvalue for users and mitigates threat of disintermediation.Example: Apple iPad absorbed e-booksExample: Microsoft Windows absorbed web browsingExample: Google added Gdrive to absorb functions of DropBox
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Page 3 and 4: Platform Ecosystem Rules• Platfor
Page 5 and 6: How do traditional linear businessm
Page 7 and 8: Traditional Supply ChainBizBizBizCu
Page 9 and 10: Creating a B2C Platform1. Make your
Page 11 and 12: How are these related?eBay SellersA
Page 13 and 14: Creating a B2C PlatformMarket OneMa
Page 15 and 16: Why do platforms beat products?
Page 17 and 18: Apple iPod combined with iTunesAppl
Page 19 and 20: How Apple is killing standalone pla
Page 21 and 22: Why Apple isn’t killing KindleWe
Page 23 and 24: Why Apple isn’t killing KindleUse
Page 25 and 26: User overlap between Platforms pred
Page 27 and 28: Openness vs. ControlMaximum protect
Page 29 and 30: Historical Open InnovationMobile Fo
Page 31 and 32: What does controlling openness mean
Page 33 and 34: Apple tried to control too much of
Page 35 and 36: For real profits, control full laye
Page 37: Should Apple have openedthe iPod?Mo
Page 41 and 42: Anything else to absorb?Rule 2: Abs
Page 43 and 44: Platform Ecosystem Rules• Platfor

Platform Strategy & Open Business Models - MIT

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