Abstract

In this paper, we address how the strategic choice of platform expansion design impacts the subse-quent platform strategy. We identify two distinct approaches to platform expansion – platform bun-dling and platform constellations, which currently co-exist. The purpose of this paper is to outline the main characteristics of the two approaches and to identify the potential trade-offs associated with the selection of particular expansion mode. To this end, we construct the Platform Strategy Framework and apply it to two exemplary cases – WeChat, which functions as a feature bundling platform, and KakaoTalk, which evolves as platform constellation. Our analysis shows that there is not any prefera-ble design as each approach has its positive and negative aspects, which need to be carefully out-weighed when a platform owner designs its expansion strategy.

Download

Share

COinS