The term ecosystem business is not new, nor are the business models. The likes of Lloyd’s, Toyota and Volkswagen have been in this line for decades and even centuries, as in the case of the first. But now, this model is gaining a lot of attention. Some of the fastest growing companies today, fall broadly under the category of ecosystem businesses. Prominent examples include the likes of Uber, Tencent, We Work, Alibaba, Google and Amazon. Not all of these may end up successful, as several have been known to lose money, as in the case of Spotify. This model is also challenging the thinking behind the twin strategies all businesses have adopted over the last few decades. Those have been a resource- based view and market positioning. Those in charge of such companies’ corporate strategy, need to take care of a few vital points, such as ensuring that customers keep flowing in. The company’s digital marketing strategy should also focus on ensuring customer loyalty, so that they stick around. One must never poach any associate’s business, as all are connected on the platform. The company needs to keep evolving with time. Several challenges will arise during this process.

Source:https://hbr.org/2019/08/ecosystem-businesses-are-changing-the-rules-of-strategy

Uploaded Date:14 August 2019