City Research Online

Abstract

The rise of the Internet has challenged traditional incumbent producers facing competition from digital entrant platforms. It is unclear, however, how these two different actors—which are in competition but also mutually dependent—can co-exist in the new platform-based ecosystem. This paper sheds light on this pivotal phenomenon, by connecting the traditional literature on incumbent adaptation with the rising conversation on digital platforms-based ecosystems. Through a qualitative longitudinal (2005-2019) study of the global digital advertising ecosystem, we examine how incumbent producers pivot between competitive and cooperative strategies in response to digital entrant platforms. Our analysis reveals a process characterized by three sequential phases: (1) selective cooperation, (2) allied competition, and (3) selective coopetition. These phases showhow switching between different multi-level strategies which span between different market segments, products, and technological components represent a viable solution for incumbent producers to adapt to the entrant platforms.

Publication Type:	Article
Additional Information:	© 2021 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY license.
Publisher Keywords:	digital platforms; ecosystem; competition; cooperation; coopetition; incumbents, business models
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments:	Bayes Business School > Management
SWORD Depositor:	Symplectic Administrator

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