Developing-Leaders-issue-31-2019

Developing Leaders Issue 31: 2019 | 73 Corporate Practice 1. Are platforms and value chains orthogonal? Michael Porter’s 1985 framework for competitive advantage suggests a linear reading of a sector of activity, in which each actor seeks to improve its position in relation to its close competitors in order to increase its margin. The digital Barbarians break this model by adding a completely new layer of intervention in the market, and furthermore, when the customer relationship is captured en masse by the new platform layer, it hits the margins of all providers wherever they are on the value chain of a product.

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