Platform envelopment
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Platform envelopment refers to one platform
Typology of Envelopment Attacks
The two different networks can be complements, substitutes and functionally unrelated. The relationship between the two networks is the basis on how the attack is launched.
Envelopment of Complements
A network market consists of several players operating in various adjacent layers. In this kind of attack a player tries to gain a dominant position in the adjacent layer by bundling the services the adjacent layer player provides in its own offerings.[3]
Envelopment of Weak Substitutes
Price a person is willing to pay for a bundle consisting of two perfect substitutes will be the one which he uses either of them and hence there would be no value for a firm to envelope a platform which acts as a perfect substitute for its own offering. However, there is a value to be created when we have in question a set of weak substitutes.
The platforms previously meant for a different usage begin to converge as the common set of users begin to rise. Such is the case with mobile phones and video game devices which were used for distinct purposes but the digital platforms available today have converged all such usages into one.
References
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