A study on countermeasures against commoditization due to biased network effects between layers in platform competitive strategy

Through the case of AGL project led by Toyota

Abstract

In some industries, complementary products in the upper layer will induce weakening and commoditization for many platform products (PFs) adjacent to lower layer. On the other hand, phenomena such as strengthening dominance of PF products adjacent to the upper layer can be observed. The automobile industry is a typical example.The purpose of this paper is to focus on AGL: Automotive Grade Linux which is a community type project of automotive OS that Toyota promotes recently. Regarding the effectiveness and issues of this project, the paper presents practical implications while referring to past similar community type projects.