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Multi-Sided Platforms: Understand their strengths and weaknesses

Ehrenstråhle, Lucas LU and Mathies, Elin LU (2015) FEKN90 20141
Department of Business Administration
Abstract
Title: Multi-Sided Platforms: Understanding their strengths and weaknesses

Seminar date: 2014-05-22

Course: FEKN90 Företagsekonomi: Examensarbete på Civilekonomprogrammet (30 ECTS)

Authors: Lucas Ehrenstråhle and Elin Mathies

Supervisor: Magnus Johansson

Five keywords: MSP, activities, resources, differentiation and platforms

The purpose: is to investigate why small actors use multi-sided platforms (MSPs). Furthermore with the number of hotels connected to the MSP, the competition intensifies. We therefore also aimed to investigate how the actors are able to differentiate themselves on the MSPs.

Method: We conducted our study on the Swedish hotel market and the use of booking sites. We applied a qualitative case study,... (More)
Title: Multi-Sided Platforms: Understanding their strengths and weaknesses

Seminar date: 2014-05-22

Course: FEKN90 Företagsekonomi: Examensarbete på Civilekonomprogrammet (30 ECTS)

Authors: Lucas Ehrenstråhle and Elin Mathies

Supervisor: Magnus Johansson

Five keywords: MSP, activities, resources, differentiation and platforms

The purpose: is to investigate why small actors use multi-sided platforms (MSPs). Furthermore with the number of hotels connected to the MSP, the competition intensifies. We therefore also aimed to investigate how the actors are able to differentiate themselves on the MSPs.

Method: We conducted our study on the Swedish hotel market and the use of booking sites. We applied a qualitative case study, with primarily a deductive approach. We made three delimitations: we concentrated on online MSPs allowing users to book hotels online, and limited ourselves to the hotel market in cities. Lastly, we excluded larger hotels and hotel chains, due them having different amounts of resources and varying organizational structures.

Theoretical framework: In order to investigate the utilization of MSP we selected Porter’s five forces analysis, Nalebuff and Brandenburger’s coopetition, Hagiu and Yoffies theories on MSP, Katz and Shapiro, and Farrell and Klemperer’s theories on network effects and externalities. To investigate the differentiation on MSP we selected Porter’s theories on competitive advantages and value activities, and Barney’s theory on firm resources.

Empirical data: Through a number of semi-structured interviews and an online survey we gathered information about the hotels and the hotel market.
Conclusions: We found that hotels utilize MSP because it is easy, allowing hotels to focus on their everyday activities gaining more customers. Furthermore we found that the hotels differentiation lies outside of the MSP and their possibilities to market those on the MSPs are limited and only exist in a basic form. Therefore hotels should more carefully investigate the effects of using MSPs. (Less)
Please use this url to cite or link to this publication:
author
Ehrenstråhle, Lucas LU and Mathies, Elin LU
supervisor
organization
alternative title
A qualitative study on MSP utilization within the Swedish hotel industry
course
FEKN90 20141
year
type
H1 - Master's Degree (One Year)
subject
keywords
platforms, differentiation, resources, activities, MSP
language
English
id
7861015
date added to LUP
2015-10-23 12:15:23
date last changed
2015-10-23 12:15:23
@misc{7861015,
  abstract     = {Title: Multi-Sided Platforms: Understanding their strengths and weaknesses

Seminar date: 2014-05-22

Course: FEKN90 Företagsekonomi: Examensarbete på Civilekonomprogrammet (30 ECTS)

Authors: Lucas Ehrenstråhle and Elin Mathies

Supervisor: Magnus Johansson

Five keywords: MSP, activities, resources, differentiation and platforms

The purpose: is to investigate why small actors use multi-sided platforms (MSPs). Furthermore with the number of hotels connected to the MSP, the competition intensifies. We therefore also aimed to investigate how the actors are able to differentiate themselves on the MSPs.

Method: We conducted our study on the Swedish hotel market and the use of booking sites. We applied a qualitative case study, with primarily a deductive approach. We made three delimitations: we concentrated on online MSPs allowing users to book hotels online, and limited ourselves to the hotel market in cities. Lastly, we excluded larger hotels and hotel chains, due them having different amounts of resources and varying organizational structures.

Theoretical framework: In order to investigate the utilization of MSP we selected Porter’s five forces analysis, Nalebuff and Brandenburger’s coopetition, Hagiu and Yoffies theories on MSP, Katz and Shapiro, and Farrell and Klemperer’s theories on network effects and externalities. To investigate the differentiation on MSP we selected Porter’s theories on competitive advantages and value activities, and Barney’s theory on firm resources.

Empirical data: Through a number of semi-structured interviews and an online survey we gathered information about the hotels and the hotel market.
Conclusions: We found that hotels utilize MSP because it is easy, allowing hotels to focus on their everyday activities gaining more customers. Furthermore we found that the hotels differentiation lies outside of the MSP and their possibilities to market those on the MSPs are limited and only exist in a basic form. Therefore hotels should more carefully investigate the effects of using MSPs.},
  author       = {Ehrenstråhle, Lucas and Mathies, Elin},
  keyword      = {platforms,differentiation,resources,activities,MSP},
  language     = {eng},
  note         = {Student Paper},
  title        = {Multi-Sided Platforms: Understand their strengths and weaknesses},
  year         = {2015},
}