Shareorstayproprietary def ensive mo ves like the o

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Unformatted text preview: l, except RIM’s BlackBerry.R. Kim, “iP ho ne No . 2 Smartpho ne P latf o rm in No rth America,” The Tech Chro nicles—The San Francisco Chro nicle, December 17, 2007. Alliances and Partnerships Firms can also use partnerships to gro w market share f o r a netwo rk. So metimes these ef f o rts bring rivals to gether to take o ut a leader. In a classic example, co nsider ATM netwo rks. Citibank was the f irst majo r bank in New Yo rk City to o f f er a large ATM netwo rk. But the Citi netwo rk was initially pro prietary, meaning custo mers o f o ther banks co uldn’t take advantage o f Citi ATMs. Citi’s inno vatio n was wildly po pular and being a pio neer in ro lling o ut cash machines helped the f irm gro w depo sits f o urf o ld in just a f ew years. Co mpetito rs respo nded with a partnership. Instead o f each rival bank o f f ering ano ther inco mpatible netwo rk destined to trail Citi’s lead, co mpeting banks agreed to share their ATM o peratio ns thro ugh NYCE (New Yo rk Cash Exchange). While Citi’s netwo rk was initially the biggest, af ter the NYCE launch a...
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This document was uploaded on 01/31/2014.

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