Have you ever wondered why Facebook paid $19 billion to buy WhatsApp ? What value Microsoft saw in the $8.5 billion take-over of Skype ? Why Google continuously launches new service propositions in markets that seem so far away from its core business? And why the European Commission thinks (rightly or wrongly) this practice is in the case of Android anti-competitive ? In this overview article we will explain the mechanics of digital business models and how companies use them to cross user segments and industry borders to create unfair business advantage.
Originally published on May 24, 2016. Go to the full article at http://neoschronos.com/insights/deciphering-digital-business-models/
Looking back in history, and with the benefit of hindsight, it is relatively easy to see why the telecommunications industry has been pushed to accept a commodity role. In fact, one can argue that the context telecommunication companies (Telcos) have been operating within, made it inevitable that telecommunications would be forced downwards to a commoditised position in the value chain.
The key factor: regulation.
Originally published on May 25, 2014. Go to the full article at http://neoschronos.com/insights/how-mass-market-services-degenerate-to-commodities/
There was a time when the mobile internet consisted of a collection of operator portals, which provided the entry to a preselected set of services consumers could access by entering the gates of a virtual garden. Competition was primarily focused on getting the consumer through the gate and keeping them within the portal, thus the term Walled Garden was born.
Are the Apple, Google and Facebook ecosystems becoming the Walled Gardens of Web 2.0?
Originally published on May 22, 2013. Go to full article at http://neoschronos.com/insights/walled-garden-2.0/