The emerging value network in the mobile phone industry: The case of Japan and its implications for the rest of the world
This paper considers how the mobile phone industry is changing from a value chain to a value network using the Japanese market as an example. Value networks involve a larger number of firms, a more complex set of relationships between them, and agreements on a greater number of interface standards than do value chains. Building from this concept of a value network, the paper shows how: (1) agreements on many of these interface standards are enabling connections to be made between the mobile phone and other industries; (2) the resulting products and services often reflect the technological capability of phones and the existing products and services in these "other" industries; (3) each new interface standard requires a new critical mass of users; and (4) a critical mass of users for a new interface standard partly builds from previously created critical masses of users. On a practical level, this paper's analysis adds to a growing list of evidence that the growth in Western mobile Internet markets is nowhere near its potential and that the change from a value chain to a value network requires a different form of standard setting, policy making, and management than are currently used in the mobile phone industry.
Authors: | Funk, Jeffrey L. |
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Published in: |
Telecommunications Policy. - Elsevier, ISSN 0308-5961. - Vol. 33, 1-2, p. 4-18
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Publisher: |
Elsevier |
Keywords: | Mobile phones Value networks Critical mass Network effects Japan Internet |
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