Post date: Jun 21, 2017 10:53:18 PM
Hemant K. Bhargava
Information Technology and Management 15.3 (2014), pp. 199{209 , issn: 1385-951X.
The article focuses on the tension that platforms face between growth and profitability. It discusses various levers of control available to the firm include managing product design and the intensity of network effects, the timing of product pre-announcements, selecting the target market for initial product launch, and whether to sell a single version or an expanded product line. It discusses the relevance of versioning strategies such as freemium pricing. The paper argues that despite initial uncertainty regarding product success and cost of product line expansion, it might be optimal to expand early because a larger user base would make the platform more attractive to developers which, over time, would make the product more attractive to late adopters.