Emerging business models and strategies for mobile platform providers: a reference framework

Abstract

Purpose -The purpose of the paper is to provide a business model design reference framework for mobile platform providers, the platform vendors and technology enablers of the mobile content market. The framework aims at identifying the most critical choices -i.e. design parameters -to be made at a business model design level for a MPP, and at explicitly assessing their strategic implications.Design/methodology/approach -The research design integrates a twofold literature review on MPPs definitions and on business model design state of the art, with an in-depth analysis of significant cases performed through a multiple case studies methodology: through 72 semi-structured interviews to top managers, 24 companies were analyzed.Findings -The findings allow to infer that some key business model parameters described by the existing literature -in particular, Osterwalder and Ballon -can be applied to MPPs' business model design process, while other original and actor-specific building blocks emerge; furthermore, a first taxonomy of three noteworthy business models currently adopted by MPPs -''pure play'', ''full asset'' and ''platform & content management'' -is identified, associated respectively to three underlying strategic patterns: ''stay on core'', ''grow, wait and see'', and ''aggressive downstream''.Research limitations/implications -The research presents a firm-specific reference framework, which, however, does not focus on the potential different performances coming from alternative design parameters selection. Future works may concentrate in developing comparative or ''benchmarking'' analysis among the different business models depicted through the taxonomy, in order to explain any differential in firms' performances originated by alternative design parameter choices.Practical implications -The findings can support a wide set of stakeholders -either first movers or newcomers in the mobile industry -in their strategic and business model design choices.Originality/value -The paper's value for researchers can be brought back to its descriptive, normative and validating contribution to value network and business model design theories, with specific reference to the rising role of mobile platform providers. Value for practitioners lies in the creation and provisioning of a ''reference framework'' capable of supporting the decision making process concerning business model design, as it presents strong ties between business model parameters and strategic implications.

The role of the adoption network in the early market survival of innovations

“…This argument is consistent with the assumption that a wide adoption network involving different actors increases the pool of resources and competencies which are bundled in the innovation conception, creation and delivery (Ghezzi, 2012), though, at the same time, it increases the system's complexity. Where the technology is mature, and the resources the overlaying service requires for its creation are believed to be widespread in the network -as if they became a sort of commodity -the mobile customers prefer to avoid the increased complexity a larger adoption network brings about.…”

How to get strategic planning and business model design wrong: the case of a mobile technology provider

“…A framework which identifi es the key business model parameters, or 'building blocks,' for the actor typology under scrutiny, partly fi lling the existing gap, is found in Ghezzi (2009). According to this study, a mobile technology provider's business model is to be assessed considering the following three macro-dimensions, in turn divided into nine parameters.…”

“…At a business model design level, the partial realization of the mistakes made led to a heavy reconfi guration of many parameters from the original to the current model. Th e changes are synthesized in Table 1: the comparison, meant to underline the shift in parameters, is based on the building blocks proposed by Ghezzi (2009).…”

Technology diffusion theory revisited: a regulation, environment, strategy, technology model for technology activation analysis of mobile ICT

“…This is not surprising, as the business model factor is inherently multidimensional and player-specific (e.g. see Ballon (2007) and Ghezzi (2012) for examples on business models specifically conceived for the Mobile industry). These subcategories could be easily represented as vertical detail within other higher-level factors which refer back to the original determinants proposed in the REST model, thus demonstrating the flexibility of the tool to describe different situations (see Figure 6).…”