Seminar: How Digital Platforms Compete – Building and Sustaining Competitive Advantage

Course Description

Content

Following the emergence of the internet in the early 1990s, and enabled by (fixed + mobile) new high-speed telecommunication networks in the early 2000s, digital platforms have resulted in some of the most dynamic and valuable businesses of the global economy.
Universal public access to digital platforms thus has facilitated opportunities for innovative services, from online search algorithms to social networks, online auctions to e-commerce marketplaces, music streaming to ubiquitous video entertainment and from ride sharing platforms to financial services, and ongoing.
All corporate entities, or firms, engaged in this market are fairly young and indeed created a new approach on ‘competitiveness’, compared to traditional industries. ‘How digital platforms compete’, i.e. how they are building and sustaining competitive advantages, is thus of supreme interest for managing/leading these businesses, and that is what we try to achieve some understanding/insight in this seminar.
Using the Case Study Method, developed by Harvard Business School (HBS) to educate graduate business (MBA) students, we look at one business case at a time in the form of a fact-based case description paper, provided to all participants one week prior to class. Each (weekly) class focuses on one digital platform providers’ competitive performance and discusses its competitive options at the time of the case, covering three broad topic areas: 1) How successful firms build and sustain competitive advantages; 2) Digital platforms’ specific ‘network effects’ and resulting business models and their economic results; 3) Dependence of digital platforms on enabling network infrastructures . With about 12 different cases, e.g. on Amazon, Google, Spotify and Netflix, the variety/multitude of competitive actions for digital platform firms will become apparent in the course of the seminar. This shall enable students, when later in life confronted with real-life (IRL) competitive issues, to apply some judgement based on the experience of the variety/multitude of cases discussed in the classroom. That is how close a classroom discussion can come to the ‘real world’. In addition, the active case discussions provide a good exercise of ‘disagreeing in an agreeable manner’, which is good practice.

 

Previous Knowledge Expected

English proficiency for case preparation and class discussion is absolutely critical. In case of non-English native speakers, case readings will require additional time. Adapting the case specific terminology is necessary for meaningful class discussions. Non specific ‘small talk’ is not an option, the detailed case content is the key reference of all class discussion.

Weekly time budget for case preperation will be no less than 5 hours per case. Case material costs will assumed by TUM, and cases will be provided as hardcopies by course instructors. Students’ commitment to continuous course attendence is therefore requested in order to join the course.

 

Objective

Knowledge-related outcomes
Upon completion of this module, students will be able to:

• Define, explain, and apply in practice key theories related to platforms and platform business models
• Interpret, classify, and assess the conduct and performance of firms trying to establish, actively deploying, or fighting against platform business models
• Describe, compare, and appraise different platform designs for a given situation
• Distinguish the newly learned theories of platforms, platform business models from previously learned perspectives
• Evaluate how environmental change may affect existing platforms and theories around platform (business models)

Skill-related outcomes

• Improve diagnostic and analytical skills (i.e., structured problem-solving)
• Build up critical thinking and interpretation skills
• Enhance verbal and argumentation skills via presentations and group discussions

 

Teaching and Learning Method

The course will utilize the Case Method, most famously developed by Harvard Business School. Since the selected cases were not specifically written for this seminar (Strategy, General Management), course specific ‘Assignment Questions’ are added to the case preparation in order to provide the specific focus on our seminar theme of competitiveness.

Please note the there is no objective to ‘solve’ a case and the objective is rather is to show multiple options from which to choose a preferred way of action. A possible ‘vote’ on the best ‘strategy’ at the end of a class discussion may present the principal options, not ‘right’ versus ‘wrong’, rather a ‘competition’ of the various arguments and options discussed in class.

 

Course Criteria & Registration

For registration you have to be identified in TUMonline as a student.

 

Further Information - Recommended Reading

An up to date reading list will be distributed around the first session of class each semester.