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Strategies to fight ad-sponsored rivals / Ramon Casadesus-Masanell in Management science, Vol. 56 N° 9 (Septembre 2010) 

Public ISBD [article]  in Management science > Vol. 56 N° 9 (Septembre 2010) . - pp. 1484-1499 Titre : Strategies to fight ad-sponsored rivals Type de document : texte imprimé Auteurs : Ramon Casadesus-Masanell, Auteur ; Feng Zhu, Auteur Année de publication : 2010 Article en page(s) : pp. 1484-1499 Note générale : Management Langues : Anglais (eng) Mots-clés : Strategy  Business  models  Tactics  Advertising  Pricing Index. décimale : 658 Organisation des entreprises. Techniques du commerce Résumé : We analyze the optimal strategy of a high-quality incumbent that faces a low-quality ad-sponsored competitor. In addition to competing through adjustments of tactical variables such as price or the number of ads a product carries, we allow the incumbent to consider changes in its business model. We consider four alternative business models: a subscription-based model; an ad-sponsored model; a mixed model in which the incumbent offers a product that is both subscription based and ad sponsored; and a dual model in which the incumbent offers two products, one based on the ad-sponsored model and the other based on the mixed business model. We show that the optimal response to an ad-sponsored rival often entails business model reconfigurations. We also find that when there is an ad-sponsored entrant, the incumbent is more likely to prefer to compete through the subscription-based or the ad-sponsored model, rather than the mixed or the dual model, because of cannibalization and endogenous vertical differentiation concerns. We discuss how our study helps improve our understanding of notions of strategy, business model, and tactics in the field of strategy. DEWEY : 658 ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/cgi/content/abstract/56/9/1484 [article] Strategies to fight ad-sponsored rivals [texte imprimé] / Ramon Casadesus-Masanell, Auteur ; Feng Zhu, Auteur . - 2010 . - pp. 1484-1499. Management Langues : Anglais (eng) in Management science > Vol. 56 N° 9 (Septembre 2010) . - pp. 1484-1499 Mots-clés : Strategy  Business  models  Tactics  Advertising  Pricing Index. décimale : 658 Organisation des entreprises. Techniques du commerce Résumé : We analyze the optimal strategy of a high-quality incumbent that faces a low-quality ad-sponsored competitor. In addition to competing through adjustments of tactical variables such as price or the number of ads a product carries, we allow the incumbent to consider changes in its business model. We consider four alternative business models: a subscription-based model; an ad-sponsored model; a mixed model in which the incumbent offers a product that is both subscription based and ad sponsored; and a dual model in which the incumbent offers two products, one based on the ad-sponsored model and the other based on the mixed business model. We show that the optimal response to an ad-sponsored rival often entails business model reconfigurations. We also find that when there is an ad-sponsored entrant, the incumbent is more likely to prefer to compete through the subscription-based or the ad-sponsored model, rather than the mixed or the dual model, because of cannibalization and endogenous vertical differentiation concerns. We discuss how our study helps improve our understanding of notions of strategy, business model, and tactics in the field of strategy. DEWEY : 658 ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/cgi/content/abstract/56/9/1484