Digitization and the New Dimensions of Competition: The Case of Digital Platforms in the Sharing Economy

Ioanna Constantiou, Attila Marton, Virpi Kristiina Tuunainen

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

Digital platforms have entered a number of industries and changed the landscape of competition. A main change is in the role of platform users who not only consume services but contribute to value creation through new services as well. Drawing on the theory of newly vulnerable markets and platform economics, we develop propositions about those changes and the strategic actions they bring about. When a platform focuses on cost efficiency, exerting tight control and promoting competition among platform users is proposed. When a platform focuses on service differentiation exerting loose control and promoting coopetition among platform users is proposed. To illustrate and support our propositions, we refer to the two leading sharing economy platforms, Airbnb and Uber that made different strategic choice on competition and cooperation with their users.
Digital platforms have entered a number of industries and changed the landscape of competition. A main change is in the role of platform users who not only consume services but contribute to value creation through new services as well. Drawing on the theory of newly vulnerable markets and platform economics, we develop propositions about those changes and the strategic actions they bring about. When a platform focuses on cost efficiency, exerting tight control and promoting competition among platform users is proposed. When a platform focuses on service differentiation exerting loose control and promoting coopetition among platform users is proposed. To illustrate and support our propositions, we refer to the two leading sharing economy platforms, Airbnb and Uber that made different strategic choice on competition and cooperation with their users.

Conference

ConferenceThe 33rd EGOS Colloquium 2017
Number33
LocationCopenhagen Business School
CountryDenmark
CityCopenhagen
Period06/07/201708/07/2017
Internet address

Bibliographical note

CBS Library does not have access to the material

Cite this

Constantiou, I., Marton, A., & Tuunainen, V. K. (2017). Digitization and the New Dimensions of Competition: The Case of Digital Platforms in the Sharing Economy. Paper presented at The 33rd EGOS Colloquium 2017, Copenhagen, Denmark.
Constantiou, Ioanna ; Marton, Attila ; Tuunainen, Virpi Kristiina. / Digitization and the New Dimensions of Competition : The Case of Digital Platforms in the Sharing Economy. Paper presented at The 33rd EGOS Colloquium 2017, Copenhagen, Denmark.21 p.
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abstract = "Digital platforms have entered a number of industries and changed the landscape of competition. A main change is in the role of platform users who not only consume services but contribute to value creation through new services as well. Drawing on the theory of newly vulnerable markets and platform economics, we develop propositions about those changes and the strategic actions they bring about. When a platform focuses on cost efficiency, exerting tight control and promoting competition among platform users is proposed. When a platform focuses on service differentiation exerting loose control and promoting coopetition among platform users is proposed. To illustrate and support our propositions, we refer to the two leading sharing economy platforms, Airbnb and Uber that made different strategic choice on competition and cooperation with their users.",
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Constantiou, I, Marton, A & Tuunainen, VK 2017, 'Digitization and the New Dimensions of Competition: The Case of Digital Platforms in the Sharing Economy' Paper presented at, Copenhagen, Denmark, 06/07/2017 - 08/07/2017, .

Digitization and the New Dimensions of Competition : The Case of Digital Platforms in the Sharing Economy. / Constantiou, Ioanna; Marton, Attila; Tuunainen, Virpi Kristiina.

2017. Paper presented at The 33rd EGOS Colloquium 2017, Copenhagen, Denmark.

Research output: Contribution to conferencePaperResearchpeer-review

TY - CONF

T1 - Digitization and the New Dimensions of Competition

T2 - The Case of Digital Platforms in the Sharing Economy

AU - Constantiou,Ioanna

AU - Marton,Attila

AU - Tuunainen,Virpi Kristiina

N1 - CBS Library does not have access to the material

PY - 2017

Y1 - 2017

N2 - Digital platforms have entered a number of industries and changed the landscape of competition. A main change is in the role of platform users who not only consume services but contribute to value creation through new services as well. Drawing on the theory of newly vulnerable markets and platform economics, we develop propositions about those changes and the strategic actions they bring about. When a platform focuses on cost efficiency, exerting tight control and promoting competition among platform users is proposed. When a platform focuses on service differentiation exerting loose control and promoting coopetition among platform users is proposed. To illustrate and support our propositions, we refer to the two leading sharing economy platforms, Airbnb and Uber that made different strategic choice on competition and cooperation with their users.

AB - Digital platforms have entered a number of industries and changed the landscape of competition. A main change is in the role of platform users who not only consume services but contribute to value creation through new services as well. Drawing on the theory of newly vulnerable markets and platform economics, we develop propositions about those changes and the strategic actions they bring about. When a platform focuses on cost efficiency, exerting tight control and promoting competition among platform users is proposed. When a platform focuses on service differentiation exerting loose control and promoting coopetition among platform users is proposed. To illustrate and support our propositions, we refer to the two leading sharing economy platforms, Airbnb and Uber that made different strategic choice on competition and cooperation with their users.

M3 - Paper

ER -

Constantiou I, Marton A, Tuunainen VK. Digitization and the New Dimensions of Competition: The Case of Digital Platforms in the Sharing Economy. 2017. Paper presented at The 33rd EGOS Colloquium 2017, Copenhagen, Denmark.