Domain Strategies for companies that offer the platform

Case of 3D CAD Kernel

Abstract

In this study, through case studies of companies that offer the kernel, the platform of the 3D CAD, we consider the domain strategy for the companies that provide the platform in the two-sided-market. Vertically integrated companies that aim to increase the benefits of their high-end CAD by disseminating their kernel to low-end CAD could not fully increase sales of their high-end CAD because of improving performance of low-end CAD. This suggests the risk that the companies may not be getting enough benefit from cross-side network effects by vertical integration when the platform has characteristics of disruptive technology.