Teknologi - länken mellan nätverkseffekter och diversifiering
(2013) FEKH19 20131Department of Business Administration
- Abstract (Swedish)
- Title: Technology – the link between network effects and diversification Seminar date: 2013-06-07
Course: FEKH19, Degree project Undergraduate level, Strategic Management, 15 University Credits Points
Authors: Carolina Edvinsson, Adam Lindroth, Andreas Walberg, Laura Waldenström Advisor: Matts Kärreman
Key words: Network effects, Diversification, Industry convergence, Technological platforms, Innovation
Purpose: This thesis aims to analyze how network effects and strategies for diversification are linked through technological platforms.
Methodology: A document case study, of mainly annual reports from the companies in question, was performed with an abductive approach and a qualitative content analysis. Selected data, in terms of... (More) - Title: Technology – the link between network effects and diversification Seminar date: 2013-06-07
Course: FEKH19, Degree project Undergraduate level, Strategic Management, 15 University Credits Points
Authors: Carolina Edvinsson, Adam Lindroth, Andreas Walberg, Laura Waldenström Advisor: Matts Kärreman
Key words: Network effects, Diversification, Industry convergence, Technological platforms, Innovation
Purpose: This thesis aims to analyze how network effects and strategies for diversification are linked through technological platforms.
Methodology: A document case study, of mainly annual reports from the companies in question, was performed with an abductive approach and a qualitative content analysis. Selected data, in terms of quotations, was gathered and categorized in line with the recommendations of Graneheim and Lundman (2004). The data is presented in a categorizing analysis and a concluding analysis.
Theoretical perspectives: Research about diversification and network effects constitute the outset of this thesis. Previous research discusses different levels of diversification (Christensen & Montgomery, 1981; Hitt, Hoskisson & Ireland, 2012, Rumelt, 1974, 1982) and the choice of diversification strategy is based on different motives (Besanko, Dranove, Shanley, & Schaefer, 2010; Hitt, et al 2012; Montgomery, 1994). According to Katz and Shapiro (1985), network effects occur when one customer’s utility of a product increases as the network expands.
Empirical foundation: The high-tech industry is characterized by rapid technological development and innovation. This industry reflects the existence of technological development, network effects as well as diversified businesses. Both Apple and Microsoft operate in the high-tech industry and appear to enjoy benefit from network effects as a result of their diversified product portfolios. Hence, Apple and Microsoft are adequate study objects.
Conclusions: The study indicates causality between technology, network effects and diversification. Conclusion one confirms that the existence of network effects may form a motive behind the choice of diversification strategy. Conclusion two suggests that the current categorisation of levels of diversification is outdated, primarily as a result of industry convergence. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/3957893
- author
- Edvinsson, Carolina LU ; Lindroth, Adam ; Walberg, Andreas and Waldenström, Laura
- supervisor
- organization
- course
- FEKH19 20131
- year
- 2013
- type
- M2 - Bachelor Degree
- subject
- keywords
- Network effects, Diversification, Industry convergence, Technological platforms, Innovation
- language
- Swedish
- id
- 3957893
- date added to LUP
- 2013-08-06 08:05:54
- date last changed
- 2013-08-06 08:05:54
@misc{3957893,
abstract = {{Title: Technology – the link between network effects and diversification Seminar date: 2013-06-07
Course: FEKH19, Degree project Undergraduate level, Strategic Management, 15 University Credits Points
Authors: Carolina Edvinsson, Adam Lindroth, Andreas Walberg, Laura Waldenström Advisor: Matts Kärreman
Key words: Network effects, Diversification, Industry convergence, Technological platforms, Innovation
Purpose: This thesis aims to analyze how network effects and strategies for diversification are linked through technological platforms.
Methodology: A document case study, of mainly annual reports from the companies in question, was performed with an abductive approach and a qualitative content analysis. Selected data, in terms of quotations, was gathered and categorized in line with the recommendations of Graneheim and Lundman (2004). The data is presented in a categorizing analysis and a concluding analysis.
Theoretical perspectives: Research about diversification and network effects constitute the outset of this thesis. Previous research discusses different levels of diversification (Christensen & Montgomery, 1981; Hitt, Hoskisson & Ireland, 2012, Rumelt, 1974, 1982) and the choice of diversification strategy is based on different motives (Besanko, Dranove, Shanley, & Schaefer, 2010; Hitt, et al 2012; Montgomery, 1994). According to Katz and Shapiro (1985), network effects occur when one customer’s utility of a product increases as the network expands.
Empirical foundation: The high-tech industry is characterized by rapid technological development and innovation. This industry reflects the existence of technological development, network effects as well as diversified businesses. Both Apple and Microsoft operate in the high-tech industry and appear to enjoy benefit from network effects as a result of their diversified product portfolios. Hence, Apple and Microsoft are adequate study objects.
Conclusions: The study indicates causality between technology, network effects and diversification. Conclusion one confirms that the existence of network effects may form a motive behind the choice of diversification strategy. Conclusion two suggests that the current categorisation of levels of diversification is outdated, primarily as a result of industry convergence.}},
author = {{Edvinsson, Carolina and Lindroth, Adam and Walberg, Andreas and Waldenström, Laura}},
language = {{swe}},
note = {{Student Paper}},
title = {{Teknologi - länken mellan nätverkseffekter och diversifiering}},
year = {{2013}},
}