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Abstract
Platform envelopment describes a competitive move whereby a digital platform enters an adjacent market. On one hand, it might enable to dethrone an established platform. On the other hand, it might give rise to the creation of platform conglomerates, which increases the concentration of private power. Therefore, platform envelopment has recently attracted significant attention from regulators and scholars. However, the traditional view of platform envelopment does not consider recent platform envelopment practices observed in research and practice. In this study, we aim to determine and structure the complexity of platform envelopment. We investigated 20 cases and developed a taxonomy of platform envelopment. We further encoded these cases into the comprehensive taxonomy and derived platform envelopment patterns and particularities. Our work contributes to research by establishing a foundation for the conceptual understanding of platform envelopment. Regulators can use this taxonomy to classify platform envelopment cases and determine potentially anti-competitive conduct.
Recommended Citation
Hermes, Sebastian; Kaufmann-Ludwig, Jonas; Schreieck, Maximilian; Weking, Jörg; and Böhm, Markus, "A Taxonomy of Platform Envelopment: Revealing Patterns and Particularities" (2020). AMCIS 2020 Proceedings. 17.
https://aisel.aisnet.org/amcis2020/strategic_uses_it/strategic_uses_it/17
A Taxonomy of Platform Envelopment: Revealing Patterns and Particularities
Platform envelopment describes a competitive move whereby a digital platform enters an adjacent market. On one hand, it might enable to dethrone an established platform. On the other hand, it might give rise to the creation of platform conglomerates, which increases the concentration of private power. Therefore, platform envelopment has recently attracted significant attention from regulators and scholars. However, the traditional view of platform envelopment does not consider recent platform envelopment practices observed in research and practice. In this study, we aim to determine and structure the complexity of platform envelopment. We investigated 20 cases and developed a taxonomy of platform envelopment. We further encoded these cases into the comprehensive taxonomy and derived platform envelopment patterns and particularities. Our work contributes to research by establishing a foundation for the conceptual understanding of platform envelopment. Regulators can use this taxonomy to classify platform envelopment cases and determine potentially anti-competitive conduct.
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