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THE NEW NEW
COMPETITION
Marshall Van Alstyne | Sangeet Paul Choudary | Geoffrey G Parker
How digital platforms
transform competitive strategy
platformrevolution.com
Based on the book
Platform Revolution
platformrevolution.com
TODAY: Welcome to the platform revolution
NETWORK EFFECTS: The power of the platform
ARCHITECTURE: Designing a platform
DISRUPTION: How platforms conquer industries
LAUNCH: Launching a successful platform
MONETIZATION: Capturing the value
OPENNESS: Defining user and partner rights
GOVERNANCE: Policies to manage value creation
METRICS: Measuring what really matters
STRATEGY: How platforms change competition
POLICY: Regulating platforms
TOMORROW: The future of the platform revolution
A comprehensive and practical guide to the new platform economy
CLICK TO PRE- ORDER
All pre-orders unlock access to exclusive bonus frameworks. Details here.
The new competitor looks 

nothing like the old one
platformrevolution.com
Marriotts
Airbnb Intercontinental Group
The new
competitor
the old
competitorlooks nothing like
platformrevolution.com
Houghton Miffin Harcourt
Amazon McGraw Hill
The new
competitor
the old
competitorlooks nothing like
platformrevolution.com
NBC Network
Netflix ABC Network
The new
competitor
the old
competitorlooks nothing like
platformrevolution.com
Lexis
Google & Legalzoom West law
The new
competitor
the old
competitorlooks nothing like
platformrevolution.com
Whirlpool
Nest Siemens
The new
competitor
the old
competitorlooks nothing like
platformrevolution.com
Facebook
Instagram, WhatsApp
& Snapchat
MySpace
The new
competitor
the old
competitorlooks nothing like
platformrevolution.com
Competition is
changing dramatically
platformrevolution.com
The WHO of competition
is changing
The new
competitor
the old
competitorlooks nothing like
platformrevolution.com
But the HOW of competition is
changing even more dramatically
?
platformrevolution.com
Firms are
competing and
achieving global
dominance
much faster
platformrevolution.com
American businesses in
steel and heavy machinery
took decades to overtake
once-dominant rivals in
Britain and Germany
platformrevolution.com
After World War Two, Japanese
upstarts required three decades
to seize leadership roles in auto
making and electronics from
industry leaders in the U.S.
platformrevolution.com
In contrast, Uber,
a little over 5 years old,
competes around the world
platformrevolution.com
Alibaba, relatively unknown in
the US before its IPO, may
pose significant threat to
Ebay and Amazon globally
platformrevolution.com
We’ve understood traditional competition well so far
platformrevolution.com
But the new competition
works on different rules
platformrevolution.com
This deck is about
the new rules!
platformrevolution.com
Too busy to get all the details?
Download this deck
platformrevolution.com
Better still,
click here to get the whole book.
All pre-orders unlock access to exclusive bonus frameworks. Details here.
TODAY: Welcome to the platform revolution
NETWORK EFFECTS: The power of the platform
ARCHITECTURE: Designing a platform
DISRUPTION: How platforms conquer industries
LAUNCH: Launching a successful platform
MONETIZATION: Capturing the value
OPENNESS: Defining user and partner rights
GOVERNANCE: Policies to manage value creation
METRICS: Measuring what really matters
STRATEGY: How platforms change competition
POLICY: Regulating platforms
TOMORROW: The future of the platform revolution
Learn about all aspects of the Platform Revolution
CLICK TO PRE- ORDER
Let’s
dig deeper
platformrevolution.com
To understand the new
competition, let’s start by
revisiting the old
platformrevolution.com
Strategy in the twentieth
century: a capsule history
platformrevolution.com
The simplest and most compelling representation 

of competitive strategy as we’ve known it
platformrevolution.com
The goal of strategy: control these five forces in such a way as to build 

a moat around the business and thereby render it unassailable.
Firms win through
creation of moats
A particularly effective
barrier to entry is control
of an indispensable and
inimitable resource
platformrevolution.com
DeBeers’ control of a diamond
cartel enabled it to maintain a near-
monopoly over the diamond
industry for the entire 20th century
platformrevolution.com
But these control-driven
rules of competition are
changing today
platformrevolution.com
Nimble firms are using new technologies
to navigate the moats established by
control of scarce resources
Today, flexibility
provides the crucial
competitive edge,
competition is
perpetual motion,
and advantage is
evanescent
platformrevolution.com
▪ The purpose of strategy is to avoid competition
The Porter View
platformrevolution.com
▪ The purpose of business is 

“to create and keep a customer”.
The Drucker View
platformrevolution.com
In a world where
sustainable advantage is 

an illusion, the Drucker
view trumps the Porter view
platformrevolution.com
Or as Peter Thiel would put it
▪ “Competition is for losers”
platformrevolution.com
“A company’s relationships
with its users are its only
lasting source of value.”
- Denning
platformrevolution.com
So how does this
change competition?
platformrevolution.com
Enter
platforms
platformrevolution.com
Two new realities are shaking
up the world of strategy
platformrevolution.com
Firms are using network effects
to create and remake markets,
not just respond to them
platformrevolution.com
Uber creates a
new market for
transportation
from scratch
instead of playing
within the
boundaries of the
existing one
platformrevolution.com
Network effects
build the new moats
platformrevolution.com
In the world of platforms,
competition is no longer
a zero-sum game
platformrevolution.com
Traditional firms
re-divide a pie
platformrevolution.com
Platform businesses
often grow the pie
platformrevolution.com
Amazon grew the
publishing pie instead
of competing for
author control
platformrevolution.com
Platforms bake
a new pie
platformrevolution.com
Airbnb unlocks new
supply that never existed
platformrevolution.com
Platforms turn
businesses
inside out
platformrevolution.com
Competitive
strategy involves
factors in the
ecosystem and
beyond the firm’s
internal control
platformrevolution.com
▪ Platform against platform,
▪ Platform against partner,
▪ Partner against partner
Competition today emerges
at three different levels:
platformrevolution.com
Platform competition
is a lot like 3D chess
platformrevolution.com
Competitors
can hit you
from any side
platformrevolution.com
TODAY: Welcome to the platform revolution
NETWORK EFFECTS: The power of the platform
ARCHITECTURE: Designing a platform
DISRUPTION: How platforms conquer industries
LAUNCH: Launching a successful platform
MONETIZATION: Capturing the value
OPENNESS: Defining user and partner rights
GOVERNANCE: Policies to manage value creation
METRICS: Measuring what really matters
STRATEGY: How platforms change competition
POLICY: Regulating platforms
TOMORROW: The future of the platform revolution
Platforms change more than just competitive strategy
CLICK TO PRE- ORDER
Level 1: 

Platform vs. Platform
platformrevolution.com
Strategic advantage
is based on the
power of entire
ecosystems
platformrevolution.com
Uber,
a little over 5 years old,
competes around the world
platformrevolution.com
The Sony PlayStation
Portable was a
stronger gaming
device than the iPhone
platformrevolution.com
But the iPhone
ecosystem vastly
out-stripped that
of the PSP
platformrevolution.com
Ecosystems are the new
competitive advantage
platformrevolution.com
Level 2: 

Platform vs. Partners
platformrevolution.com
Microsoft
appropriated partner
innovations like
browsers,
multithreading,
streaming media, and
instant messaging
into its operating
system
platformrevolution.com
Amazon 

is notorious for
competing with
partner merchants
that perform well
platformrevolution.com
Level 3:
Competition between
ecosystem partners
platformrevolution.com
How is platform
competition different?
?
platformrevolution.com
The resource-based view
▪ A firm must own/control the inimitable resource
platformrevolution.com
On platforms,
the inimitable
resource shifts
from physical
assets to
access to
community
interactions
platformrevolution.com
How platforms win
platformrevolution.com
Let’s
dig deeper
platformrevolution.com
Model 1: 

Own the ecosystem
platformrevolution.com
Platforms win by seeking exclusive
access to their ecosystem
platformrevolution.com
Uber vs. Lyft
▪ No clear winner yet because they do not have
exclusive access to the ecosystem
platformrevolution.com
Both drivers and riders may
participate simultaneously on
both platforms
platformrevolution.com
Model 2: 

Monitor ecosystem activity and
own the most important
resources that emerge
platformrevolution.com
Alibaba owns the search
functionality on its platform,
refusing to partner with Baidu
platformrevolution.com
Twitter acquired Periscope
and closed access for Meerkat
▪ It realized the value of live streaming
on the platform
platformrevolution.com
The best way to
identify what’s
important is to
foster greater
innovation
within the
ecosystem
platformrevolution.com
Meerkat and
Periscope were
outcomes of
innovation
outside of
Twitter, the
company
Watch out for new
features or apps that
appear on the platform
platformrevolution.com
Model 3: 

Leverage the value of data
platformrevolution.com
Data is the new oil
▪ A cliche but certainly true on platforms
platformrevolution.com
Platforms use data analysis
to detect spurious activity
among users
platformrevolution.com
They also use data to
identify ways to grow faster
and stay competitive
platformrevolution.com
Platforms may
also win through
ownership of
superior data
platformrevolution.com
Monster has long reigned on
the online recruitment market
▪ But LinkedIn captured a much
richer data set
platformrevolution.com
LinkedIn knows more about
the profiles of professionals
▪ More importantly, LinkedIn helps recruiters
access professionals not actively looking
for a job
platformrevolution.com
Model 4: 

The new M&A
platformrevolution.com
Buy someone who’s already
built on your platform
platformrevolution.com
Increasingly,
incumbents are
opening their data
encouraging startups
to build on their
platform
platformrevolution.com
Model 5: 

Monitor adjacent and
indirect competition
platformrevolution.com
Competitors who look
different but serve the
same user base
platformrevolution.com
Instagram vs. Facebook
▪ Started out as a photo sharing app
platformrevolution.com
Whatsapp vs. Facebook
▪ Started out as an alternate to SMS
platformrevolution.com
Model 6: 

Superior technological design
platformrevolution.com
Vimeo coexists
with YouTube…
… by providing a superior
offering for discerning producers.
platformrevolution.com
Airbnb competed
with Craigslist
…through a superior management
of the end-to-end interaction
platformrevolution.com
Better trust
mechanisms,
transaction
capabilities and
superior governance
of the ecosystem
encouraged
interactions on
Airbnb
platformrevolution.com
Winner take all markets
A final note on platform competition
platformrevolution.com
“Being second is to be
the first of the ones
who lose.”
- Ayrton Senna
platformrevolution.com
A winner-take-all market
▪ A market in which specific forces conspire to
encourage users to gravitate toward one
platform and to abandon others
platformrevolution.com
Traditional
industries created
winner-take-all
through supply
side economies
of scale
platformrevolution.com
Platforms create winner take
all through demand side
economies of scale
platformrevolution.com
Understanding the
dynamics of
platform competition
will be important for
those pursuing a
platform strategy as
well as those
participating in a
platform’s
ecosystem
platformrevolution.com
Want to understand
this better?
platformrevolution.com
Better still,
click here to get the whole book.
All pre-orders unlock access to exclusive bonus frameworks. Details here.
Get your copy of the slides
Download this deck
platformrevolution.com
TODAY: Welcome to the platform revolution
NETWORK EFFECTS: The power of the platform
ARCHITECTURE: Designing a platform
DISRUPTION: How platforms conquer industries
LAUNCH: Launching a successful platform
MONETIZATION: Capturing the value
OPENNESS: Defining user and partner rights
GOVERNANCE: Policies to manage value creation
METRICS: Measuring what really matters
STRATEGY: How platforms change competition
POLICY: Regulating platforms
TOMORROW: The future of the platform revolution
Learn about all aspects of the Platform Revolution
CLICK TO PRE- ORDER

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