City Research Online

Abstract

Physical goods producers routinely collaborate with digital platforms to extend their distribution capabilities. They usually realize that digital platform firms differ from them in their strategies and capabilities, and that significant opportunities arise from innovating digital platforms being able to collect, analyze, and leverage behavioral customer data related to the consumption experience. However, collaborating with digital platforms is likely to put competitive pressure on the incumbent’s margins, and, in extremis, encourage entry by the platform into the incumbent’s business. These threats can be moderated by limiting access to the incumbent’s technology and supply chain, or by building an in-house digital platform.

Publication Type:	Article
Additional Information:	This article is distributed under the terms of the Creative Commons Attribution 4.0 License (https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/open-access-at-sage).
Publisher Keywords:	Platforms; Disruption of physical goods industries, Dynamic capabilities
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments:	Bayes Business School Bayes Business School > Management
SWORD Depositor:	Symplectic Administrator

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