From product to platform: How incumbents' assumptions and choices shape their platform strategy

Platform ecosystems have attracted a lot of attention as a new way of value creation and capture. In a longitudinal multi-case study, we compare the transformation efforts of two incumbents in the agricultural equipment industry between 2012 and 2021. We identify a set of interdependent choices incumbents make to adapt their model of value creation and capture toward a platform ecosystem. Based on an in-depth comparison, we show that incumbents' assessment of the potential of their product business may lead to distinct platform positioning – the platform as an extension of the legacy business (i.e., product-centric), or a product-independent platform. While our results indicate that both can initiate viable pathways for incumbents in their transition, we find that product-independent and product-centric positioning lead to distinct choice patterns and outcomes at the different levels of the emerging platform ecosystem.