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

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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 languageEnglish
    Title of host publicationECIS 2016 Proceedings
    EditorsMeltem Özturan, Matti Rossi, Daniel Veit
    Number of pages16
    Place of PublicationAtlanta, GA
    PublisherAssociation for Information Systems. AIS Electronic Library (AISeL)
    Publication date2016
    Article number78
    Publication statusPublished - 2016
    EventThe 24th European Conference on Information Systems (ECIS) 2016 - Boğaziçi University, Istanbul, Turkey
    Duration: 12 Jun 201615 Jun 2016
    Conference number: 24
    http://www.ecis2016.eu/en/

    Conference

    ConferenceThe 24th European Conference on Information Systems (ECIS) 2016
    Number24
    LocationBoğaziçi University
    CountryTurkey
    CityIstanbul
    Period12/06/201615/06/2016
    Internet address
    SeriesProceedings of the European Conference on Information Systems
    ISSN0000-0034

    Keywords

    • Multi-sided platforms
    • Platform expansion
    • Platform strategy
    • Case studies

    Cite this

    Staykova, K. S., & 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] Atlanta, GA: Association for Information Systems. AIS Electronic Library (AISeL). Proceedings of the European Conference on Information Systems