An analysis of Google entry and positioning in Unified Communications for the business customers market
In this paper, we focus on the telecommunications/computing convergence in business market. While the telecommunications/audio-visual convergence has been extensively analysed from an academic perspective, the telecommunications/computing convergence has drawn less attention. This is also the case in general of the business market as opposed to the consumer market. The business communications market has been deeply transformed by technological and product convergence, due to the progressive substitution of traditional TDM-based voice products and services by ToIP (Telephony over IP) based products and services. The adoption of IP and the management of voice applications in the same way as data application has given rise to convergence offerings under the name of Unified Communications, and allowed the entry of data communications vendors, such as Cisco, in a market initially dominated by TDM-based product vendors. The increasing dissociation between hardware and software and the virtualisation of services have induced the entry of new players relying on their initial position in software and web services, among which Microsoft and Google. Firstly, we present the Unified Communications market and products. Secondly, we analyse how Google's has entered this market and built its product portfolio through acquisitions, in order to identify the dimensions of line extensions and the importance of extensions. Thirdly, it leads us to discuss this strategy as an extension of its two-sided market strategy. This strategy is different from its traditional two-sided market strategy, as it aims at generating other revenues than only advertising. It is also not really a two-sided market, but rather a product versioning relying on direct network externalities. This study is based on documentary research, in particular the systematic analysis of Google's press releases, and on information collected from interviews with market incumbents.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.itsworld.org/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rochet, Jean-Charles & Tirole, Jean, 2005.
"Two-Sided Markets : A Progress Report,"
IDEI Working Papers
275, Institut d'Économie Industrielle (IDEI), Toulouse.
- Sylvia Chan-Olmsted & Jae-Won Kang, 2003. "Theorizing the Strategic Architecture of a Broadband Television Industry," Journal of Media Economics, Taylor & Francis Journals, vol. 16(1), pages 3-21.
- Jean-Charles Rochet & Jean Tirole, 2003.
"Platform Competition in Two-Sided Markets,"
Journal of the European Economic Association,
MIT Press, vol. 1(4), pages 990-1029, 06.
- Rochet, Jean-Charles & Tirole, Jean, 2003. "Platform Competition in Two-Sided Markets," IDEI Working Papers 152, Institut d'Économie Industrielle (IDEI), Toulouse.
- Jean-Charles Rochet & Jean Triole, 2002. "Platform competition in two sided markets," LSE Research Online Documents on Economics 24929, London School of Economics and Political Science, LSE Library.
- Jean-Charles Rochet & Jean Triole, 2002. "Platform Competition in Two Sided Markets," FMG Discussion Papers dp409, Financial Markets Group.
- Mark Armstrong, 2005.
"Competition in Two-Sided Markets,"
When requesting a correction, please mention this item's handle: RePEc:zbw:itsb12:72474. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.