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Article No 3
Media Convergence and Business Ecosystems
Nabyla Daidj, Ph.D.
Institute Telecom
Telecom Business School, France
Head of Department of Management, Marketing and Strategy
Keywords
Apple, Google, Microsoft, convergence, diversification, strategic alliance, business ecosystem
Abstract
Because the markets in which Apple, Google and Microsoft compete are characterized by rapid technological advances, their ability to compete successfully is dependent on their strategies to ensure the launch of competitive products, services and technologies. This paper focuses on convergence and links with the reconfiguration of value chains in the “new media” sector and diversification strategies adopted by the three companies. As these organizations are made up of different business units, a question arises to how resources and competencies are to be allocated across these businesses. Performance and profitability are determined by an organization’s resources and competencies. The different modes of growth (strategic alliances, partnerships, mergers & acquisitions) and in particular, the emergence of business ecosystems will be analysed.
Introduction
Since the beginning of the 1990s, the strategies employed by today’s media and telecommunication companies have led to increased concentration within the industry. In part, this concentration can be explained by worldwide deregulation and privatization trends. This, in turn, has contributed to a decrease in so-called natural monopoly structures. The digitalization and convergence of information and communication technologies (ICT) has also had a significant impact on media business strategy. In addition, the development of digital and interactive technologies has accelerated the erosion of the existing frontiers between the media industries (Peltier, 2004) The result has been the creation of an entirely new set of actors (Internet giants, telecommunications service providers etc.) who now compete directly with

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