Business Strategy in the Online Industry: Market and Network Strategy in Multi-Layered Industries

ISBN-13: 9783824473182 / Angielski / Miękka / 2001 / 323 str.

Christian G. Ttsch

Opis

"The Internet is like a 201'00t tidal wave coming thousands of miles across the Pacific and we are in kayaks. " Andi Grove In the course of the commercial distribution of Internet technology since the year 1995 new business models emerged and ultimately established the on-line industry as a distinct eco- nomic environment. The author defines this new marketspace as " . . . . a multi-layered industry consisting of five main layers: network, hosting, software, content and devices. Each layer consists of sub-layers. Players from the converging industries telecommunications, computer hardware/software, media and consumer electronics conduct on-line business units offering a set of on-line services. " (S. 17). Significance and growth of the on-line industry are enormous. The market for multimedia products and services represents approximately 10% of the US GOP already today. The industry volume is expected to double every 12 to 18 months. The increasing relevance of the on-line industry is driving the interest of academia in a theoretical foundation of the observed economic phenomena. The term network economics establishes a new scientific area. Due to the specific structure and logic of the industry traditional business concepts and strategy approaches can be translated only in a limited way. At this point the work of Christian Gottsch comes in play, which - by utilizing the theoretical concepts of net- work economics and game theory - models the structure of the on-line industry and delivers a methodic set of instruments to develop marketing strategies.

Spis treści

I: Introduction.- 1. Particular Approach, Research Focus and Methodology.- 1.1. This Particular Approach.- 1.1.1. The Context of “Buzz Words”.- 1.1.2. Research Perspective and Object Definition.- 1.1.3. The Internet and the Emergence of a New Constellation in the Process of Convergence.- 1.2. Research Problem: Structure of and Strategy in the On-line Industry.- 1.3. Applied Theory, Scientific Positioning & Research Design.- 1.3.1. Applied Theory & Scientific Positioning.- 1.3.2. Research Design.- 1.4. Structure of the Thesis.- II: On-line Industry Structure — Analysis & Model.- 2. Analysis of the On-line Industry.- 2.1. Description of the Field.- 2.1.1. Political & Institutional Framework.- 2.1.2. Technological Framework.- 2.1.3. Industrial Framework.- 2.1.4. Socio-Economic Framework.- 2.1.5. Conclusion from the Industry Environment.- 2.2. Theoretical Framework for an Industry Model.- 2.2.1. On Network Economics.- 2.2.2. Competitive Industry Analysis in Overlapping Industries.- 2.2.3. Conceptual Model of Multi Layered Industries.- 2.3. Analysis of the History of Proprietary On-Line Services.- 2.3.1. Utilization of Experience Curve Effects.- 2.3.2. The Proprietary Online Service Business Model.- 2.3.3. Proprietary On-Line Service Architectures.- 2.3.4. Structure of a Vertically Integrated Business System.- 2.4. The Shock of Convergence — Disintegration and Transition into the Internet Paradigm.- 2.4.1. Deconstruction of the Value Chain.- 2.4.2. Economies of Scale and Scope.- 2.4.3. Competency based Competition.- 2.4.4. The Results: Unbundling, Differentiation and Explosive Growth.- 2.5. On-Line Industry in the Internet Paradigm — Reinvention of the Past.- 2.5.1. The Multi Layer Business System — The New On-Line Business Paradigm.- 2.5.2. The Applied Model.- III: On-line Business Strategy — Analysis & Tools.- 3. Navigating in the On-Line Industry — Firm Strategy.- 3.1. Challenges for Business Strategy.- 3.1.1. Challenges Caused by the Exogenous & General Field Parameters.- 3.1.2. Challenges Based in the Product-Market Area.- 3.1.3. Challenges Caused by the Interdependencies of the Multiple Layers.- 3.1.4. Summary and Structure of the Strategic Challenges.- 3.2. Business Strategy Mainstream.- 3.2.1. Market-Based View.- 3.2.2. Resource-Based View.- 3.2.3. Lessons for Competition in the On-Line Industry.- 3.2.4. Tool Set.- 3.3. Tools for Net-Centric Business Strategy.- 3.3.1. Enabling Externalities for a Network Strategy.- 3.3.2. Product Strategy.- 3.3.3. Networking Strategy.- 3.3.4. Pricing Strategies & Business Models.- 3.3.5. Adoption Strategy.- 3.3.6. Co-opetition Games with Your Complementers.- 3.4. Summary of Tools, Tool Set and Industry Model.- IV: Summary & Outlook.- 4. Summary & Outlook.- 4.1. Summary — Dynamic Structure & Strategy.- 4.2. Outlook — Further Research Issues.- References.- Sources Consulted — Interview Partners.

O autorze

Dr. Christian Göttsch promovierte bei Prof. Dr. Hans A. Wüthrich am Lehrstuhl für Internationales Management der Universität der Bundeswehr München. Er ist heute im Corporate Development bei der Gruner + Jahr AG & Co für das Multimedia-Geschäft zuständig.

Blurb

Enormous growth and rapid changes challenge business strategy and the economic theory of the online industry. In the new marketspaces of the Internet much is happening, while causes and effects often seem unclear. The fundamental relevance for businesses, industrial sectors, and for academia requires a deeper analysis for strategic management.

Christian Göttsch lays out the structural setting and the predominant mechanisms underlying the online industry. His work looks behind the obvious short-term effects and identifies enduring economic principles.
The author presents a solid conceptual framework for this networked e-conomytm and provides successful product-market strategies in the online industry. His insights are frequently illustrated with American as well as European case studies of prominent players such as AOL, Yahoo! or Netscape.