This is a summary about the additional readings Wright and Nyberg (2017), Porter (2008), Kenney and Zysman (2016) and Davis (2016) about change in organizations and platformization.
Wright & Nyberg 2017
Industrialization → exploitation of fossil fuels and destruction of forests and oceans →
radical changes in the functioning of society and economy to face such a crisis.
Major reason for lack of progress: the way in which climate change is translated within major
corporations.
→ even among strong proponents of the need to respond to the climate crisis, those concerns
converted into less treathening discourses of profit maximization and shareholder value.
→ c onclusion: business leadership on climate change alone is i nsufficient to provide the
dramatic decarbonization needed to avoid dangerous climate change.
Business and t echnological innovation is an essential part of the climate response.
→ i ssue: climate change also needs regulatory guidance to ensure significant and permanent
reductions in g reenhouse gas emissions.
Organizations and economies must be managed within the limits of planetary boundaries
requiring societal governance for the collective good.
→ climate change is an unparalleled threat to the future of our society → a future that goes
beyond the comfortable assumptions of business as usual.
Porter 2008
Porter's model includes five interrelated forces that influence industry competition.
→ 5 forces: (1) threat of new entrants, (2) power of buyers, (3) power of suppliers, (4) threat
of substitute products, and (5) rivalry among existing competitors.
Why: identifies and analyses 5 competitive forces that shape an industry and determine
weaknesses and strengths → to identify industry’s structure and corporate strategy.
→ framework for analysing company’s competitive environment → influence on profitability
→ used to guide business strategy to increase competitive advantage.
1. The less time and money it costs to enter a market and be an effective competitor, the
more an established company’s position could be weakened → strong entry barriers
ideal for existing company’s to charge higher prices.
2. How many buyers a company has, how significant each one is and how much it
would cost a company to find new customers of markets for its output → s maller and
powerful client base means more power to customers to negotiate for lower prices.
3. How easily suppliers can drive up the cost of inputs → affected by number of
suppliers, how unique the inputs are and how much it would cost a company to
switch → the fewer suppliers in an industry, the more dependence → the more power
→ many suppliers and low switching costs, company can keep input costs lower.
4. No close substitutes means more power to increase prices → available close
substitutes means customers have the option to buy others, power is weakened.
5. The larger the number of competitors, the lesser the power of a company → when
competitive rivalry is low, a company has greater power to charge higher prices.
Kenney & Zysman 2016
Digital platform economy enables radical changes → shape interactions → IT.
→a
ll platforms are based on mobilizing human beings to contribute.
→p latforms and the cloud: essential part of third globalization → s hared economy.
→p latform owners develop power that may be more formidable than that of the factory
owners in the early industrial revolution → can result in utopia or dystopia.
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