PLATFORM DIVERSIFICATION: Multi-Channel Networks
Today, the digital world, globally, is in an extremely competitive market due to numerous digital enterprises that are aggressively competing for the market share.
Product differentiation and diversification are crucial to fulfill customer demands, increase market share on a global scale and reduce design cost.
To respond rapidly to market changes, a company must consistently acquire competitive knowledge. The more knowledge a company acquires allows growth and diversity into new markets. Using different technologies has the potential to cross-pollinate other technologies, yielding new opportunities and functionalities.
Technological synergies provide incentives for business diversification and work together to provide new services and innovative technologies. Companies need to not only expand to Facebook, YouTube and AOL but also Twitter, Yahoo, Hulu, Vine and Netflix to name a few.
Five main advantages in Multi-Channel Network (MCN) platform diversification:
- Reduces costs
- Generates flexibility for new technologies to develop
- Technological resources have wider applicability
- Change is constant and diversity provides advantage
- Businesses can easily adapt platforms to address change