Platform Expansion Design as Strategic Choice: The Case of WeChat and KakaoTalk

Kalina S. Staykova; Jan Damsgaard

Platform Expansion Design as Strategic Choice: The Case of WeChat and KakaoTalk

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

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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.

Original language	English
Title of host publication	ECIS 2016 Proceedings
Editors	Meltem Özturan, Matti Rossi, Daniel Veit
Number of pages	16
Place of Publication	Atlanta, GA
Publisher	Association for Information Systems. AIS Electronic Library (AISeL)
Publication date	2016
Article number	78
Publication status	Published - 2016
Event	24th European Conference on Information Systems, ECIS 2016 - Boğaziçi University, Istanbul, Turkey Duration: 12 Jun 2016 → 15 Jun 2016 Conference number: 24 http://www.ecis2016.eu/en/

Conference

Conference	24th European Conference on Information Systems, ECIS 2016
Number	24
Location	Boğaziçi University
Country/Territory	Turkey
City	Istanbul
Period	12/06/2016 → 15/06/2016
Internet address	http://www.ecis2016.eu/en/

Series	Proceedings of the European Conference on Information Systems
ISSN	0000-0034

Keywords

Multi-sided platforms
Platform expansion
Platform strategy
Case studies

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@inproceedings{10c078454ad14c1d830d64d2a0648d66,

title = "Platform Expansion Design as Strategic Choice: The Case of WeChat and KakaoTalk",

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.",

keywords = "Multi-sided platforms, Platform expansion, Platform strategy, Case studies, Multi-sided platforms, Platform expansion, Platform strategy, Case studies",

author = "Staykova, {Kalina S.} and Jan Damsgaard",

year = "2016",

language = "English",

series = "Proceedings of the European Conference on Information Systems",

editor = "Meltem {\"O}zturan and Matti Rossi and Daniel Veit",

booktitle = "ECIS 2016 Proceedings",

publisher = "Association for Information Systems. AIS Electronic Library (AISeL)",

note = "24th European Conference on Information Systems, ECIS 2016 ; Conference date: 12-06-2016 Through 15-06-2016",

url = "http://www.ecis2016.eu/en/",

}

Staykova, KS & Damsgaard, J 2016, Platform Expansion Design as Strategic Choice: The Case of WeChat and KakaoTalk. in M Özturan, M Rossi & D Veit (eds), ECIS 2016 Proceedings., 78, Association for Information Systems. AIS Electronic Library (AISeL), Atlanta, GA, Proceedings of the European Conference on Information Systems, 24th European Conference on Information Systems, ECIS 2016, Istanbul, Turkey, 12/06/2016. <http://aisel.aisnet.org/cgi/viewcontent.cgi?article=1079&context=ecis2016_rp>

Platform Expansion Design as Strategic Choice: The Case of WeChat and KakaoTalk. / Staykova, Kalina S.; Damsgaard, Jan.
ECIS 2016 Proceedings. ed. / Meltem Özturan; Matti Rossi; Daniel Veit. Atlanta, GA: Association for Information Systems. AIS Electronic Library (AISeL), 2016. 78 (Proceedings of the European Conference on Information Systems).

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

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N2 - 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.

AB - 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.

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