Abstract
In this paper, I discuss the platform (PF) envelopment strategy, which is particularly influential as a two-sided market PF competition strategy. I presented the case of Direct3D from Microsoft and RenderWare from Criterion Software, clarified the attack and defense processes at the tactical level, and highlighted new knowledge.
As a result, the tactics implemented by Microsoft, the attacking company, were concentrated in two areas: the development of a complementary PF product and promotional activities. The former was characterized by the invalidation of patents, while the latter was marked by the importance of psychological elements. For example, the PF was announced long before it was actually offered. On the other hand, for the company being subject to attack, three defensive measures are important: (1) extending the life of the business by conducting PR activities in the market that emphasize the track record of the PF product, (2) launching new businesses by developing software applications that utilize the PF technology, and (3) promoting sales to and establishing ties with hardware companies and companies that can compete with or restrain the attacking company. Legal action such as patent lawsuits would also have been desirable.
