4. Making the revenue model a barrier to entry
The analysis consists in studying the value chain upstream of its own, to determine whether it is possible to control them and influence the revenue model of the links concerned.
Indeed, companies know and practice barriers to entry by increasing capital intensity. They are less familiar with and practise barriers to entry through impoverishment of the upstream links in their own value chain, by seeking to take control of them.
Take music download platforms, for example. There were many of them, and the battle was going to be fierce. A well-known American operator in the mobile terminal market realized the danger of other operators acting as intermediaries between the rights-holding companies and itself upstream of its value chain. By choosing to provide the...
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Making the revenue model a barrier to entry
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