2012
DOI: 10.1007/978-3-642-30746-1_12
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Platform Substitution and Cannibalization: The Case of Portable Navigation Devices

Abstract: Abstract. Platform competition may engender a substitution process whereby customers and complementors drift from one platform to another. For example, as the aftermath of a competitive race between a general-purpose platform and a single-purpose rival. A case in point is how sales of personal navigation devices (PND) have allegedly been sapped by GPS-enabled smartphones with comparable turn-by-turn navigation functionalities. Using a structural-break unit-root econometric model, the impact of smartphones on t… Show more

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Cited by 2 publications
(1 citation statement)
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References 14 publications
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“…Specialpurpose devices are being substituted for functionally-equivalent software applications on general-purpose computers, often offered by the same vendor. Manufacturers of personal navigation devices, for instance, have started developing navigation software for GPS-enabled smartphones [44]. Software sales and distribution channels are increasingly digitalized as well, even in enterprise software markets [45].…”
Section: Research Issuesmentioning
confidence: 99%
“…Specialpurpose devices are being substituted for functionally-equivalent software applications on general-purpose computers, often offered by the same vendor. Manufacturers of personal navigation devices, for instance, have started developing navigation software for GPS-enabled smartphones [44]. Software sales and distribution channels are increasingly digitalized as well, even in enterprise software markets [45].…”
Section: Research Issuesmentioning
confidence: 99%