Emerging business models and strategies for mobile platform providers: a reference framework

Abstract

PurposeThe purpose of the paper is to provide a business model design reference framework for mobile platform providers, the platform vendors and technology enablers of the mobile content market. The framework aims at identifying the most critical choices – i.e. design parameters – to be made at a business model design level for a MPP, and at explicitly assessing their strategic implications.Design/methodology/approachThe research design integrates a twofold literature review on MPPs definitions and on business model design state of the art, with an in‐depth analysis of significant cases performed through a multiple case studies methodology: through 72 semi‐structured interviews to top managers, 24 companies were analyzed.FindingsThe findings allow to infer that some key business model parameters described by the existing literature – in particular, Osterwalder and Ballon – can be applied to MPPs' business model design process, while other original and actor‐specific building blocks emerge; furthermore, a first taxonomy of three noteworthy business models currently adopted by MPPs – “pure play”, “full asset” and “platform & content management” – is identified, associated respectively to three underlying strategic patterns: “stay on core”, “grow, wait and see”, and “aggressive downstream”.Research limitations/implicationsThe research presents a firm‐specific reference framework, which, however, does not focus on the potential different performances coming from alternative design parameters selection. Future works may concentrate in developing comparative or “benchmarking” analysis among the different business models depicted through the taxonomy, in order to explain any differential in firms' performances originated by alternative design parameter choices.Practical implicationsThe findings can support a wide set of stakeholders – either first movers or newcomers in the mobile industry – in their strategic and business model design choices.Originality/valueThe paper's value for researchers can be brought back to its descriptive, normative and validating contribution to value network and business model design theories, with specific reference to the rising role of mobile platform providers. Value for practitioners lies in the creation and provisioning of a “reference framework” capable of supporting the decision making process concerning business model design, as it presents strong ties between business model parameters and strategic implications.