Modalities of Ecosystem Competition

Cambridge University Press eBooks, pp. 115–134

Abstract

Competition between ecosystems is different than competition in and for markets. Ecosystem competition happens on multiple levels, between multiple types of ecosystems. Inter-ecosystem competition is competition between different brands, firms with vast digital conglomerates compete with one another across a range of markets. The value of these product ecosystems is determined in large part by the activity on their platforms, where competition happens between complementors within the ecosystem of a single ecosystem operator. The ecosystem operator may also vertically integrate and compete with their complementors directly. These different dynamics mean that ecosystem operators can exhibit their powers in and across markets and ecosystems. Ecosystem power is a form of non-structural power that allows the ecosystem operator to leverage its position into new markets and entrench its existing monopolies. Ecosystem operators can strengthen their position in inter-ecosystem competition by supporting intra-ecosystem competition with and between complementors, or escape competitive pressures by differentiating their ecosystem from others.

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