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Entrance into a platform‐dominated market: Virtue of an open strategy on the numerical computation market
Author(s) -
Blondel Frédérique,
Edouard Serge
Publication year - 2015
Publication title -
canadian journal of administrative sciences / revue canadienne des sciences de l'administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 48
eISSN - 1936-4490
pISSN - 0825-0383
DOI - 10.1002/cjas.1320
Subject(s) - computation , open platform , matlab , industrial organization , open source , process (computing) , market share , competitive advantage , computer science , open innovation , open market operation , business , knowledge management , software , marketing , economics , operating system , algorithm , monetary policy , monetary economics
Strategic and industrial analysis reveals it is extremely difficult to enter a market dominated by an existing platform. In fact, direct or indirect network effects give the established company's platform a considerable competitive edge. This is true of the numerical computation market and the Matlab + Simulink platform by MathWorks. The case study of Scilab Enterprises helps identify conditions of viability for breaking into such a market. We find that alone, the platform strategy is doomed to fail, but accompanied by an open strategy, entering a platform market becomes possible. We hypothesize that a platform strategy is successful when associated with an open innovation process (integration of the open source community) and supported by a business ecosystem (a huge community of developers, users, and allies). Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.