Development of a Platform Ecosystem Business Model: The Case of a Third-Party Logistics Company in Finland
No Thumbnail Available
URL
Journal Title
Journal ISSN
Volume Title
School of Business |
Master's thesis
Authors
Date
2018
Department
Major/Subject
Mcode
Degree programme
Strategy
Language
en
Pages
92
Series
Abstract
Abstract The logistics industry is facing rapid disruption due to new technologies and digitalization. The competitive landscape has become more dynamic and sophisticated for the third-party logistics service providers, commonly known as (“3PLs”). The change mainly comes from digital entrants who operate on top of “platform-based business model”. As a result, this thesis aims to study the application of a platform ecosystem model in the case of a 3PL operating in Finland. Particularly, the thesis examines who can be potential participants to invite onto the platform and which new value can be generated for all of them. This study contributes significantly to the existing research and practice of 3PL platform ecosystems. Specifically, the study develops an innovative theoretical framework that enables the construction of a platform ecosystem model. The theoretical framework emphasizes the position of a 3PL as a platform owner and of the participants who expect new value to be offered. The framework highlights the concept of “level of openness” between and among the platform components. Whether to keep the interactions open or closed depends on four factors: (1) the network effects that these actors generate, (2) their impact on the competitive landscape of the platform ecosystem, (3) the alignment of motivations among the participants, (4) the common benefits they contribute through collaborative effort and the private benefits they want to extract from the system. The empirical analysis shows that the 3PL can benefit from getting five participant groups onto its platform, namely (1) global retailers, (2) local retailers, (3) local suppliers, (4) subcontractors, and (5) consumers. Based on the challenges mainly caused by a lack of openness within the ecosystem, three platforms that offer new value to the participants were constructed. These platforms aim to reinforce open interactions with and among participants. These platforms are: (1) the Global-Local platform, (2) the Warehouse-Sharing platform, and (3) the Delivery Dispatch Platform. The Global-Local platform enables the global retailers, local retailers and local suppliers to openly interact on a single platform in terms of their sales, marketing and delivery activities. The Warehouse-Sharing platform is dedicated to the warehouse lessors, which can be the focal firm or other units that have warehouses, and the warehouse lessees, who are the local retailers and suppliers. The lessors and lessees can have open communication of their demand and supply situation. Last, the Delivery Dispatch platform smoothens the delivery process by letting the deliverers and the consumers communicate openly with each other.Description
Thesis advisor
Kähäri, PerttuKeywords
platform, ecosystem, logistics industry, Finland