Cloudy Analytics Inc.

Published 28 Jun 2019
Reference 6288
Topic Operations
Region Asia
Summary

This case showcases how access- and ownership-based business models segment the market based on useage heterogeneity, and how pricing equilibrium emerges from the resulting duopoly. It also shows, counter-intuitively, that access-based entrants may intentionally benefit from choosing “inferior” technology to soften price competition from ownership-based incumbents, even when the cost of technology is ignored.

Keywords
  • Pricing
  • Access versus ownership
  • Segmentation
  • Servicization
  • Q41819