Differentiation Strategies in Sharing Economy
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Questions and Answers

What is the primary objective of digital transformation within companies according to the discussed framework?

  • Increasing the size of the customer base only
  • Reducing labor costs through automation
  • Eliminating competition from traditional businesses
  • Enhancing customer intimacy to build loyalty (correct)

    • Which of the following is NOT a driver of digital transformation as per the provided content?

  • Technological advancements towards automation
  • Traditional marketing techniques (correct)
  • Customer demands for enhanced services
  • Regulatory changes impacting business operations

    • What is a primary focus of differentiation strategies within the sharing economy?

  • Reducing operational costs to maximize profits
  • Mimicking competitors to avoid market losses
  • Standardizing services to ensure consistency
  • Creating unique value propositions that stand out (correct)

    • In the context of creating a competitive advantage, which approach does Audi primarily focus on?

    <p>Improving operational excellence through digital platforms</p> Signup and view all the answers

    What aspect of governance is emphasized in the digital platforms strategies?

    <p>Establishing a clear network effect for platform success</p> Signup and view all the answers

    Which statement best describes the impact of digital transformation on competition?

    <p>Companies must adapt their strategies to maintain competitiveness</p> Signup and view all the answers

    Which of the following best describes the relationship between digital leadership and organizational transformation?

    <p>Effective digital leadership drives comprehensive organizational change</p> Signup and view all the answers

    What does the concept of ambidexterity strategy refer to in the context of digital business?

    <p>Balancing between exploration of new opportunities and exploitation of existing capabilities</p> Signup and view all the answers

    What is a significant driving factor for digital growth in companies?

    <p>Understanding and adapting to the new rules of the game</p> Signup and view all the answers

    Why is it important for companies to create a competitive advantage using digital technologies?

    <p>To ensure long-term sustainability in a fast-changing environment</p> Signup and view all the answers

    What is a key element that Audi utilizes in its differentiation strategy?

    <p>Positioning in the premium car segment</p> Signup and view all the answers

    What is NOT part of the mechanisms for competing in the sharing economy according to the provided content?

    <p>Increase vehicle production capacity</p> Signup and view all the answers

    Which of the following best represents a strategy used by Audi to differentiate its mobility services?

    <p>Offering a variety of unique mobility services like Audi select and Audi on demand</p> Signup and view all the answers

    Why is there a significant need for differentiation strategies in the sharing economy?

    <p>Many platforms face a high failure rate</p> Signup and view all the answers

    What distinguishes Audi's car-sharing services from those of competitors like Car2go and DriveNow?

    <p>Audi offers a broader range of mobility services tailored to different user preferences.</p> Signup and view all the answers

    Which differentiation strategy primarily emphasizes enhancing user experience through luxury residential partnerships?

    <p>User experience focus</p> Signup and view all the answers

    What is a significant technological benefit mentioned for Audi's Digital Key?

    <p>Improved mediation efficiency</p> Signup and view all the answers

    What is cited as a challenge in employing technology for improving service delivery in car sharing?

    <p>High costs of implementing engineering solutions</p> Signup and view all the answers

    Which aspect of differentiation involves the use of algorithms for better service matching?

    <p>Technological efficiency</p> Signup and view all the answers

    What key technological feature is used by Airbnb as an example of fostering trust in the service?

    <p>Super host criteria</p> Signup and view all the answers

    Study Notes

    Session 5: Differentiation Strategies and Competition in the Sharing Economy

    • This session focuses on differentiation strategies and competition within the sharing economy.
    • The specific case study for this session is Audi.
    • The course coordinator is Nabila BOUKEF Ph.D, an Associate Professor in Information Systems and digital transformation at SKEMA Business School.
    • The course is a two-year Master of Science (MSc) in Digital Business.

    Course Schedule

    • The course schedule covers several topics, including rethinking strategy in the digital era, digital strategy formulation, strategy approaches, ambidexterity strategy, digital platforms strategies, differentiation strategies, and business process transformation.
    • It also includes building digital capabilities and creating digital leadership and digital strategy execution.

    Digital Journey

    • Students are asked to define their digital strategy in light of the current digital era's rules.
    • There are five key aspects to consider: (1) defining a company's digital strategy given the new rules of the game; (2) various ways to create competitive advantage with digital technologies; (3) different ways to create a competitive advantage with digital technologies; (4) how incumbent companies can adapt to the current competitive landscape; and (5) the disrupting effect of platforms.

    Part 2: Why, What, and How

    • The key concepts include digital transformation drivers, competitive advantage creation, digital growth creation, and competitive advantages with digital technologies.

    Digital Platform Strategies

    • A diagram shows the relationship between network effects, governance, and differentiation in digital platform strategies.
    • The session 4 covers network effects and governance.
    • Session 5 covers differentiation on digital platforms.

    Questions Addressed in This Session

    • The main question for this session is how companies define their digital strategy in the face of new rules and focus on the case of a sharing economy.

    Session Outline

    • The session outline includes Audi case study analyses of the threat of sharing mobility services.
    • Differentiation strategies are part of the session outline.
    • There is a graded assignment (10% of the total grade) based on the Zimride Case Study.

    Audi Case Study (Part 1)

    • Specific questions are provided about analysis of digital transformation drivers as per D. Rogers framework, competitive advantage, strategy approach, and risk management of sharing mobility platforms along with framework completion.
    • This case study is about how Audi copes with the threat of sharing mobility services.

    Drivers of Digital Transformation

    • Factors like customer expectations, competition, value shifts, data importance, and innovation speed contribute to digital transformation.
    • Digital platforms are considered a major threat to incumbent car manufacturing companies.
    • Data plays a crucial strategic role in digital transformation journeys.

    Competition

    • Competition for incumbent companies includes technology companies (Tesla, Apple, Google).
    • Competition includes companies that offer sharing mobility products (risk of substitution from owning a car).

    Competition Faced by Audi (Sharing Mobility Services)

    • Audi faces competition from existing companies in the sharing mobility market.
    • Competition from new pure players like Uber and Zipcar.
    • A discussion about potential challenges for Audi and strategy approach.

    Audi's Competitive Advantage

    • Audi's competitive advantage comes from reinventing its business model and leveraging existing capabilities.
    • This involves partnerships with luxury residents.

    Audi's Strategy Approach

    • Audi's strategy approach involves adapting to a disrupted industry, recognizing that resources like sharing mobility services are a recent investment.
    • This is done through experimentation and adaptation via an adaptive strategy.

    How Did Audi Ensure its Digital Growth?

    • Audi achieved its digital growth through ambidexterity (balancing exploitation and exploration).
    • This includes separation of a new business unit dedicated to mobility services.
    • Partnerships with luxury residents are integral to this approach.

    Audi's Risk Management in Sharing Mobility Platforms

    • Audi implemented a strategy to manage the risk of sharing mobility platforms by maintaining existing business practices, experimenting with new strategies, and partnering with other companies.
    • This is described as a hybrid strategic response.

    Differentiation Strategy of Audi

    • This includes positioning in premium segments, new mobility services, and digital keys (a unique feature that most competitors have not implemented yet).
    • The strategy considers the needs of luxury clients, offering tailored solutions.

    Three Differentiation Strategies

    • Technology plays a key role in improving efficiency and providing user-centered features.
    • User experience is a critical factor, creating value through interaction and engagement.
    • Partnerships are crucial for accessing resources and expanding services.

    Technology as a Differentiation Strategy

    • The efficiency of mediation of platforms through algorithms (as seen in example applications).
    • Building trust by creating features (as in Airbnb).
    • Providing added-value services using technology, like Audi's digital key.

    User Experience as a Differentiation Strategy

    • User experience is also important, using social interaction as a differentiator (BlaBla Car).
    • The experience is enhanced by the quality of materials and their use (Audi's premium cars).

    Partnership as a Differentiation Strategy

    • Forming strategic partnerships to create value for users, leveraging exclusive access to resources and infrastructure.
    • Partnership deals can be made to establish support systems for resources like car parking.

    Udemy Case Study

    • Udemy's differentiation strategy focuses on course quality and social interactions among users.
    • This strategy also relies on user experience.
    • Different strategies are used to complement this approach, including technology and partnership.

    Competitors in the Sharing Economy

    • Competitors in the sharing economy need to consider network effects, access control, and differentiation strategies.
    • Each strategy should complement other aspects of the strategy.
    • Companies like Uber and Lyft highlight the existence of different approaches within the same strategy.

    Takeaways

    • To effectively compete in the sharing economy, platforms need to focus on network effects, governance of the platform, and differentiation.
    • These approaches can involve user experience, technology, and partnerships.

    Competing in the Sharing Economy

    • There are three major strategies for any business competing in the sharing economy; create a network effect, control access and governance mechanisms, and apply a differentiation strategy.

    Audi Case Study (Part 2)

    • Analysis of Audi's differentiation strategy.
    • Advantages of this strategy for Audi compared to its competitors.

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    Related Documents

    Session 5 Differentiation Strategy - SKEMA Business School

    Description

    Explore the differentiation strategies and competitive dynamics within the sharing economy, with a special focus on Audi as a case study. This session is part of a Master of Science course in Digital Business at SKEMA Business School, coordinated by Dr. Nabila Boukef, aiming to equip students with essential digital capabilities and strategies.

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