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Article Strategies for two-sided markets (Eisenmann et al., 2006) - Book : Build Platforms, not just products

Q: A competitive value train starts with a horizontal train of firms leading to a final consumer on the right. The number of firms drawn will depend on your business model and means of distribution. Following are three broad types commonly seen as you move upstream from the final consumer:

1. Distributor = delivers the product or service to the customer, although it may not manufacture the product or service (e.g., a (e- )retailer like Walmart or Amazon) 2. Producer = creates the finished product, service, or offering paid for by the consumer (e.g., insurance company, record label book publisher, laptop manufacturer). 3. Originator = creates unique elements or parts of the offering (e.g., a manufacturer producing operating systems or chips for laptops or a musician creating recordings for a record label)

4 important questions on Article Strategies for two-sided markets (Eisenmann et al., 2006) - Book : Build Platforms, not just products

Tool: the competitive value train

- Focuses on competition by looking at the leverage between
companies in a supply chain and their potential substitutes
and by mapping how a particular product or service reaches
a particular group of customers.
- Allows managers to focus on competitive and cooperative
forces at work in delivering a particular stream of value

Competitive value train =

a tool designed to analyze competition
and leverage between a firm and its business partners, rivals, and
asymmetric competitors.

A competitive value train starts with a horizontal train of firms leading to a final consumer on the right. The number of firms drawn will depend on your business model and means of distribution. Following are three broad types commonly seen as you move upstream from the final consumer:

1. Distributor = delivers the product or service to the customer,
although it may not manufacture the product or service (e.g., a (e-
)retailer like Walmart or Amazon)
2. Producer = creates the finished product, service, or offering paid for by the consumer (e.g., insurance company, record label book
publisher, laptop manufacturer).
3. Originator = creates unique elements or parts of the offering (e.g., a manufacturer producing operating systems or chips for laptops or a musician creating recordings for a record label)