The objective of this paper is to propose a new framework that can analyze the case in which existing non-platform businesses are exposed to the envelopment attack of powerful platformers and help the former develop strategies for counterattacks against the latter. The envelopment attack has become a serious problem for existing non-platform businesses with the arrival of Google, Apple, Facebook, and Amazon (GAFA) and the 5G Era in which giant platformers including GAFA are wielding power with boundless ambition to invade existing business areas that were previously seen as irrelevant to platforms.
What was proposed is the crossing-type framework of platform strategy. It was constructed by synthesizing existing theories—the theory of platform strategy and the theory of dynamic strategy (proposed by Kawai). From the perspective of existing theories, the constructed framework implies their extension. For the theory of platform strategy, it is an extension of platform envelopment strategy specifically in its practical usage. For the theory of dynamic strategy, it is an extension of its external validity to two-sided (or multi-sided) markets.
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