Thanks to the help of the Internet, businesses now can operate globally. Through the ecosystem economy, they can leave traditional market operation now. Suppliers, distributors, customers industry can now collaborate easily.
The massive opportunity brought by the ecosystem’s economy is also accompanied by problems of Ecosystem Economy.
Read more: Get to Know Ecosystem Economy
Unequally Distributed Value
Sadly, not all of the current existing companies equally exposed to the benefit of the Ecosystem Economy. Many of them have many limitations. Contrarily, the technology giants are fighting over a $100 trillion digital dividend by 2025.
Plenty of companies are investing in technology. However, the scales are tipping in favor of technology giants. Digital startups have also set their pace in the Ecosystem Economy.
This happens because of two major reasons. Firstly, technology companies have anticipated the changes in the customer’s mindset and lifestyle. Customer’s mindset and lifestyle have, indeed, dramatically changed in the last two decades. Secondly, technology companies always focus on creating an innovative platform over products. Thus, it is easier for them to bring their platforms to market via the digital ecosystem.
Consequently, the top five companies in the world are claimed by technology companies. They also win over customers in brand appeal and trust. The study proved customers give a higher rating for ride-hailing apps than traditional rental car companies. People also prefer online banks over street banks.
Entangling Alliances
Relationship in the ecosystem takes many forms. These relationships are built on myriad structures, from joint ventures to mergers, exclusive, and nonexclusive partnerships. Businesses can use the opportunity. They can find the right combination of complementary partners and allies.
Interlocking relationships can create complex competitive dynamics and lock players into platforms. For instance, graphics chipmaker Nvidia, is working with eight different automakers. They work together to build embeddable computers for self-driving cars.
Consequently, partnerships may be the right solutions for traditional businesses facing problems of Ecosystem Economy. Instead of investing much money to build their technology, they can find partners.
