Strategies to Fight Ad-sponsored Rivals
We analyze the optimal strategy of a high-quality incumbent that faces a low-quality ad-sponsored competitor. In addition to competing through adjustments of tactical variables such as price or the number of ads a product carries, we allow the incumbent to consider changes in its business model. We consider four alternative business models—a subscription-based model; an ad-sponsored model; a mixed model in which the incumbent offers … [ Read more ]
Content: Article | Authors: Feng Zhu, Ramon Casadesus-Masanell | Source: Harvard Business School (HBS) | Subject: Strategy