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Modeling and analysis for mobile application services: The perspective of mobile network operators

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  • Wang, Juite
  • Lai, Jung-Yu
  • Chang, Chih-Hsin

Abstract

The success of Apple's App Store has motivated many mobile network operators (MNOs) to embrace the application store. However, finding a successful strategy that provides meaningful differentiation in an increasingly competitive mobile application market is a great challenge for MNOs. This research treats the mobile application service as a two-sided market and develops a system dynamics model to understand the diffusion behavior of mobile application services. Choice-based conjoint analysis is used to collect multi-attribute preference data of end-users and developers in order to understand how they select application store service offerings in Taiwan's mobile application market. We found that under the great pressure of application stores offered by mobile platform providers, MNOs have to provide services that directly attract adoption by end-users and developers, because the cross-side network effect is not significant. MNOs need to apply a localization strategy based on their strengths while improving their store service quality by collaborating with third-party IT vendors to persuade developers and end-users to adopt their stores as another “home base”. We conclude that MNOs need to not only fully exploit their resources to sense and seize emerging opportunities, but also reconfigure their resources with respect to market dynamics to rebuild their core competences for sustaining their competitive advantages.

Suggested Citation

  • Wang, Juite & Lai, Jung-Yu & Chang, Chih-Hsin, 2016. "Modeling and analysis for mobile application services: The perspective of mobile network operators," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 146-163.
    • Handle: RePEc:eee:tefoso:v:111:y:2016:i:c:p:146-163
    DOI: 10.1016/j.techfore.2016.06.020
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    2. German Blanco & Rajeev K. Goel & Rati Ram, 2023. "What drives the production and diffusion of mobile apps? An international investigation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 828-838, March.
    3. Sun Haitao, 2020. "Big data analysis of e-commerce loan risk of college students in the context of network finance," Information Systems and e-Business Management, Springer, vol. 18(3), pages 439-454, September.
    4. Gianluca Elia & Alessandro Margherita & Claudio Petti, 2020. "Building responses to sustainable development challenges: A multistakeholder collaboration framework and application to climate change," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2465-2478, September.
    5. Edward Oughton, 2017. "Towards 5G: scenario-based assessment of the future supply and demand for mobile telecommunications infrastructure," Working Papers 2017/04, Cambridge Judge Business School, University of Cambridge.
    6. Yongyoon Suh & Yongtae Park, 2018. "Identifying and structuring service functions of mobile applications in Google’s Android Market," Information Systems and e-Business Management, Springer, vol. 16(2), pages 383-406, May.
    7. Lara Stocchi & Naser Pourazad & Nina Michaelidou & Arry Tanusondjaja & Paul Harrigan, 2022. "Marketing research on Mobile apps: past, present and future," Journal of the Academy of Marketing Science, Springer, vol. 50(2), pages 195-225, March.

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