Extra-condensed knowledge

Companies must find new competitive strategies to succeed on dominant internet platforms.

The dominant online platform companies are now the most valuable companies in the world, and their growing power over other organizations is enabling them to rewrite the rules of business strategy.
Platform-dependent businesses must recognize the power dynamics and risks intrinsic to platform-controlled markets. And they must develop strategies that leverage a platform’s resources while mitigating its power over them.
A platform’s power dramatically constrains the freedom businesses possess to devise and pursue competitive strategies.
Competing effectively in these markets requires businesses to recognize the ways platforms limit the control they have over the three sources of competitive advantage.
Traditional assumptions about competitive strategy are no longer valid in platform-organized markets, and in this new competitive landscape, the strategies necessary for businesses to succeed have changed.

Genioux knowledge fact condensed as an image

Category 2: The Big Picture of the Digital Age

[genioux fact produced, deduced or extracted from MIT SMR]

Type of essential knowledge of this “genioux fact”: Essential Deduced and Extracted Knowledge (EDEK).

Type of validity of the "genioux fact".

Inherited from sources + Supported by the knowledge of one or more experts + Supported by research.

Authors of the genioux fact

Fernando Machuca

References

Competing on Platforms, Donato Cutolo, Andrew Hargadon, and Martin Kenney, March 09, 2021, MIT Sloan Management Review, MIT SMR.

ABOUT THE AUTHORS

Donato Cutolo is a postdoctoral research fellow at the University of Bologna. Andrew Hargadon is the Charles J. Soderquist Chair in Entrepreneurship at the Graduate School of Management at the University of California, Davis. Martin Kenney is a distinguished professor of community and regional development at the University of California, Davis.