The dynamism of the two-sided application store market Online publication date: Tue, 30-Sep-2014
by Kati Jarvi, Samuli Kortelainen
International Journal of Technology Marketing (IJTMKT), Vol. 6, No. 1, 2011
Abstract: Application stores as the most recent manifestation of two-sided markets have attracted multiple players, such as device and operating system manufacturers in the field of telecommunications. Although the option to enter the application store market offers a lucrative opportunity for the operators, there are significant internal and external challenges for operators entering the application business. In this paper we study what possibilities and challenges the two-sided application store market brings to the intermediary's (e.g., operator's) business and how these affect the market dynamism. Theoretically, we draw from the literature of two-sided markets, software platforms and intermediaries, observe the emergence of application stores and competition between them with real-world examples and conclude with the representation of the central issues in lowering the barriers to entry from the operators' point of view in order to grasp the arising opportunity.
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