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Envelopment strategies in platform markets : analysis of Hewlett-Packard Company (2006-2011)

Rahmede, Felix (2016) Envelopment strategies in platform markets : analysis of Hewlett-Packard Company (2006-2011).

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Abstract:Platform Markets are not a new phenomenon. However, it is companies like Google, Apple, Facebook and Amazon with their enormous growth rates and vast market capitalization that fueled the interest of today’s scholars and practitioners. How do ICT platform companies, such as these, innovate their business model over time in order to maximize profit? It is expected that envelopment is one of the key aspects driving the innovation of business models in the ICT Platform industry. Eisenmann (2011) laid the foundation for such an analysis with his typology of envelopment, which distinguishes three different kinds of envelopment. However, he left open how and when which type of envelopment is best utilized in order to achieve long term financial success. In order to capture this, this study has investigated the envelopment pattern of HP from 2006 to 2011 by means of analyzing the introductions of new value propositions. This resulted in the finding of a correlation between the number of markets enveloped and financial success. However, this correlation by itself is by no means generalizable! Only after exposing the underlying envelopment strategy utilized by HP, generalizable conclusions could be drawn. After a comparison of the findings with Müller (2015), two distinctive envelopment strategies for ICT platform companies, that lead to long term financial success and sustainable envelopment, could be identified. Finally, an updated version of Müller’s (2015) Envelopment Matrix has been derived, illustrating the two distinctive strategies that are expected to be valid for a wide spectrum of the ICT platform Industry.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics, 85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:https://purl.utwente.nl/essays/69988
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