End Of Competition, The: The Impact Of The Network Economy. C N A Molenaar

a positive feeling about the sponsor of your sports club? Creating an affinity requires direct and personalised communication. And for this you need algorithms. Platforms will attract and create a bond with visitors, but products and services have to motivate them.

      The constant denial of these developments, the continual trivialising of platforms, because they would lead to unfair competition (!) or acquire a dominant market position (such as with Alibaba.com or Amazon.com) is surely a sign of impotence? Not wanting to change and refusing to respond to the wishes of consumers?

      We are shifting from a supply-driven economy to a demand-driven economy, you could say a Fourth Industrial Revolution. Taking part is no longer a choice; it is a necessity. But how, when and with what technology or partners? With which partners and in what concept (platform)? In this book I explore the indicators of change, the motives for change and the changes that are yet to come. Concrete plans provide clarity regarding the steps that can be taken, and they indicate who is already going down that road. It took a thorough theoretical analysis to determine the current developments and to predict any future ones. In my book, The End of Shops (2011), based on buying behaviour I predicted that many shops would disappear due to their decreasing relevance with the new buying behaviour. In 2017, I analysed the disruptive nature of platforms. These platforms, like Uber and Airbnb actually only emerged after 2015 based on new automation possibilities such as multiservice programming, APIs and new analysis techniques. My conclusion was and remains, it is bend or break. In the last two years, I have been involved in various change strategies in the course of which platforms and algorithms based on analyses were developed. This has lead not only to new insights and knowledge but also to an increasing realisation that much more still needs to be done.

      The developments in the Western world are influenced by the freedom of choice people enjoy, cultural aspects and the adoption of new technologies. In Asia we see not only some similar developments but also developments that are different. In particular due to the Internet penetration later taking on larger forms, it was possible to make modifications to the concept. In many Asian countries such as China, South Korea and Vietnam, their governments take on a much more intensive role than in the Western world. We see other developments as a result, and also typically European issues such as privacy are dealt with differently in Asian countries. This leads to a stimulus in innovative applications, such as social media, virtual reality and commercial applications like face recognition and algorithms. I devote a separate chapter in this book to examine the social media in Asia and its consequences.

      With a group of eMarketing students from the Rotterdam School of Management at Erasmus University in the Netherlands, I have carried out research in the Netherlands and Europe as well as in Asia and, in particular, in America. The current developments are universal. In this book, I make various references to these studies and to study trips to, for example, America, China and South Korea. I would like to draw particular attention to a number of studies and researchers: Tim Scholtes and Jan Biezepol: The Future of Competition; Henrique Campos; Wael Romdhane and Pierre Vigor: Integration Online and Offline in a Physical World; Erik Casemier and Eline van Groningen: What is the Impact of the Matching Function on Multisided Platforms on the Customer Experience; Zuzana Kupcova, Paul Chaintreuil and Guilia Montorsi: How do Consumers Behavior and Loyalty Change in a Network Economy; Richelle Lum Shun Yi, Kristel Tan Sheng Hui and Pim Fijt: The Future of Retailing for both Traditional and Platform Retailers; Wendy-Kristy Hoogerbrugge (OU): Over Inbound Marketing and Innovation and Chrystalla Panteli, Songri Lee and Subin Jeon: Target Marketing by the US, South Korea and China. The chapter about Asia was written in close cooperation with Songri Lee and Subin Jeon. I also like to mention Sofie Geeroms (asbl BeCommerce vzw). During our study trip in China we discussed thoroughly the impact of all new developments. It really sharpened my insight and vision.

      In addition, I have had many discussions with Ruben Schmetz on the automation aspects, and have met with potential suppliers of platform technology with API links (there are not that many). With Meindert van Duyvenbode from Datacon, I have developed various concepts and talked about certain limitations of systems. During our study trip to China, I had the opportunity to discuss the developments from a practical point of view with Dick Slootweg from Bidfood. I also greatly appreciated his valuable constructive criticisms on the manuscript. Regarding the modifications for the section about Asia, eMarketing exchange students Songri Lee and Subin Jeon provided me with much support in the analyses as well as many opportunities for discussions.

      And finally, I would like to thank my wife Patricia, the basis for all these studies. It is often a giant leap from planet Cor to earth. But just the occasional comment was usually enough.

      I have greatly enjoyed gathering and analysing the data as well as putting it into a practical context. During this process I have become convinced that we are at the beginning of a new age: the age of ‘being digital’, with other rules, other suppliers and a different buying behaviour. Closing your eyes to this is to deny yourself a future.

       C.N.A. Molenaar

       Oosterbeek

       May 2019

      Email: [email protected]

      Websites: www.exquo.nl; www.platformsupport.nl

      About the Author

      Cor Molenaar is Professor at RSM/Erasmus University in Rotterdam for the chair eMarketing. He is also founder and director of the consultancybureau eXQuo consultancy and Platformsupport.nl in The Netherlands. He is an authority on the field of digitalisation in Marketing and the impact of platforms on business structures and competitive strategies.

      He is an advisor to various big and medium size companies in Europe and a frequently asked speaker on conferences and board room sessions.

      Contents

       Preface

       About the Author

       Chapter 1 Introduction

       Chapter 2 The Development of the Network Economy: Opportunities and Threats

       Chapter 3 The New Market Conditions

       Chapter 4 From Supply Chain to Network

       Chapter 5 Networks Become the Competition

       Chapter 6 Technology as a Basis for New Competitive Relationships

       Chapter 7 It is about Customers, Not Products: A Change of Vision

       Chapter 8 New Marketing and Competition Principles through the Adoption of Technology

       Chapter 9 Opportunities for Asia Based on Characteristics and Culture

       Chapter 10 Towards the Future: Join In or Disappear?