A Comparison of Inter-Organizational Business Models of Mobile App Stores: There is more than Open vs. Closed

The purpose of this paper is to analyze the competition among mobile app stores for smart mobile media devices. Therefore, the business models of seven mobile app stores are analyzed with a special focus on Apple and Google. We use e3-value modelling - a formal business modelling technique - for analyzing the critical elements of these mobile ecosystems. The analysis of the app store ecosystems allows a differentiated view on the different strategies of the app store owners. Additionally, we look at the impact of network effects, economies of scale, platform differentiation, quality assurance, and transaction costs on the design of mobile application markets. This theoretical model allows a deeper discussion about the design choices and success factors in the different app store cases. Based on our analysis, we expect that the open versus closed models discussion becomes less relevant - so-called open platforms have closed aspects as well as the other way around - and that competitive differentiation and segmentation strategies will become increasingly critical in order to strengthen the competitive positioning of the different app store platforms.

[1]  S. Winter,et al.  In search of useful theory of innovation , 1993 .

[2]  O. Williamson Markets and Hierarchies: Some Elementary Considerations , 1973 .

[3]  Beat F. Schmid,et al.  Elements of a reference model for electronic markets , 1998, Proceedings of the Thirty-First Hawaii International Conference on System Sciences.

[4]  S. Winter,et al.  An evolutionary theory of economic change , 1983 .

[5]  J. Peppard,et al.  From value chain to value network: Insights for mobile operators , 2006 .

[6]  Hans Weigand,et al.  Strategic Analysis Using Value Modeling--The c3-Value Approach , 2007, 2007 40th Annual Hawaii International Conference on System Sciences (HICSS'07).

[7]  S. Winter,et al.  Evolutionary theorizing in economics , 2002 .

[8]  J. Rochet,et al.  Platform competition in two sided markets , 2003 .

[9]  H. Chesbrough,et al.  The Role of the Business Model in Capturing Value from Innovation: Evidence from Xerox Corporation's Technology Spin-Off Companies , 2002 .

[10]  H. Bouwman,et al.  Governing Mobile Service Innovation in Converging Value Networks , 2008, 2008 7th International Conference on Mobile Business.

[11]  Yves Pigneur,et al.  Business Model Generation: A handbook for visionaries, game changers and challengers , 2010 .

[12]  S. Winter,et al.  In search of useful theory of innovation , 1993 .

[13]  E. Faber,et al.  Conceptualizing the STOF Model , 2008 .

[14]  Jaap Gordijn,et al.  Designing and evaluating e-business models , 2001 .

[15]  Henry Chesbrough,et al.  Open Innovation: The New Imperative for Creating and Profiting from Technology , 2003 .

[16]  David S. Evans,et al.  The Industrial Organization of Markets with Two-Sided Platforms , 2005 .

[17]  Chrysanthos Dellarocas,et al.  Immunizing online reputation reporting systems against unfair ratings and discriminatory behavior , 2000, EC '00.

[18]  Detlef Schoder,et al.  Openness of Information Resources - A Framework-based Comparison of Mobile Platforms , 2010, ECIS.

[19]  C. Shapiro,et al.  Systems Competition and Network Effects , 1994 .

[20]  O. Williamson,et al.  Transaction Cost Economics , 1995 .

[21]  Kevin J. Boudreau,et al.  Open Platform Strategies and Innovation: Granting Access vs. Devolving Control , 2010, Manag. Sci..

[22]  児玉 文雄 Harvard Business Review : 抄録雑誌の概要 , 1987 .

[23]  Andrew M. McCosh,et al.  Models for Managers , 1978 .

[24]  J. Magretta Why business models matter. , 2002, Harvard business review.

[25]  S. Winter,et al.  An Evolutionary Theory of Economic Change.by Richard R. Nelson; Sidney G. Winter , 1987 .

[26]  Milton L. Mueller The Master Switch: The Rise and Fall of Information Empires , 2011 .

[27]  Feida Lin,et al.  Operating System Battle in the Ecosystem of Smartphone Industry , 2009, 2009 International Symposium on Information Engineering and Electronic Commerce.

[28]  Nils Walravens,et al.  “How about an App Store?” Enablers and Constraints in Platform Strategies for Mobile Network Operators , 2010, 2010 Ninth International Conference on Mobile Business and 2010 Ninth Global Mobility Roundtable (ICMB-GMR).

[29]  Katrin Ostertag Transaction cost economics , 2003 .

[30]  Jonas Hedman,et al.  The business model concept: theoretical underpinnings and empirical illustrations , 2003, Eur. J. Inf. Syst..

[31]  E. Friedman,et al.  The Social Cost of Cheap Pseudonyms , 2001 .

[32]  Yves Pigneur,et al.  Clarifying Business Models: Origins, Present, and Future of the Concept , 2005, Commun. Assoc. Inf. Syst..

[33]  Paul Resnick,et al.  Reputation systems , 2000, CACM.

[34]  Audun Jøsang,et al.  A survey of trust and reputation systems for online service provision , 2007, Decis. Support Syst..

[35]  H. Chesbrough Open Business Models: How to Thrive in the New Innovation Landscape , 2006 .

[36]  Mutaz M. Al-Debei,et al.  Developing a unified framework of the business model concept , 2010, Eur. J. Inf. Syst..

[37]  E. P. Michael Strategy and the Internet. , 2001 .

[38]  BoudreauKevin Open Platform Strategies and Innovation , 2010 .