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Platform Competition and Envelopment

In: Platform Business Models for Executives

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  • R. Srinivasan

    (Indian Institute of Management Bangalore)

Abstract

After having studied how platforms shape up to compete in winner-takes-all markets, we do appreciate that all markets do not exhibit WTA characteristics. In this chapter, we will talk about how platforms compete against each other and the idea of platform envelopment. Platform envelopment happens when a larger multi-bundle platform starts providing the value provided by a simple platform. Such threats of envelopment are critical for the development of platforms and diversification into complementary products and services. At the end of this chapter, you would be able to analyse the various competitive decisions by platforms and understand how platform envelopment happens. You will also be able to devise strategies for mitigating envelopment risks and managing multi-platform bundles.

Suggested Citation

  • R. Srinivasan, 2023. "Platform Competition and Envelopment," Management for Professionals, in: Platform Business Models for Executives, edition 2, chapter 0, pages 107-119, Springer.
    • Handle: RePEc:spr:mgmchp:978-981-99-4910-6_8
    DOI: 10.1007/978-981-99-4910-6_8
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