Summary Of Cusumano's Competitive Strategy

As seen, prof. Cusumano highlights that platform economy plays a key role in business, politics, and social interaction. As a basis for the digital economy, the platform is rising dramatically. Digital platform such as Google and Facebook, Alibaba can act as a tool to search and as social media. They also offer an infrastructure for the help of building other platforms. Amazon is a marketplace, as are Etsy and eBay. Amazon Web Services provides infrastructure and tools with which others can build yet more platforms. As an example of transaction platform, Airbnb and Uber create a new business where anyone in the world can access to a global market. Three transformative technologies have driven the rise of platform – could, social media and mobile.

Porter, no matter industry is domestic or international and no matter the product or service it is provided. Five competitive forces exist: the entry of new competitors, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and the rivalry among the existing competitors. Carefully go through these five forces, all of them can be significantly influenced by the digital platform. In digital business, nowadays, the entrepreneurs or startups could build a new business model with a new platform, this must change the nature of competition. Taxi services, for example, Uber offer a model via a digital app combined with the physical taxis. The bargaining power of buyers/customers due to access to information, insights from social media will strongly threaten the traditional

argue the effect of location on the rural entrepreneurship in Europe. They pointed out that entrepreneurship is extremely affected by location. Location associating with the distance from major markets and accessibility to customers, suppliers, information sources, and institutions will affect transportation costs of inputs and outputs and have implications on information dissemination and the diffusion of policy instruments as well. [Ref 4] In 1993, Stearns and co-workers examined over 1900 new firms with respect to location effect of starting firms and they found that location decides survival chances of firms. [Ref 5] Location matters for traditional entrepreneurship and their shareholders due to many impact factors. Depending on different countries, proximity to markets, raw materials, wage rates, quantity and quality of the labor supply, general business climate, tax rates, internet access, total operating costs, barriers on political, business, cultural, and international trade agreements are different. Even though in the same country, the different city presents various population trends, competition, clustering, compatibility with the community, local laws and regulations, transportation networks, police and fire protection, the cost of utilities and public services, quality of life that would extremely affect the expansion and growth of entrepreneurs. We can conclude that the geographical location extremely affects the traditional industry. In