Formation Process of Traditional Service Firm's Platform Ecosystem Strategy: A Case Study of Colour Life

Abstract

In the mobile Internet era, more and more traditional service firms are trying to build platform ecosystems. Most research about platform ecosystem focus on the element, structure, the relationship between members etc. However, there are little attention on the formation process of traditional service firm's strategy to build a platform ecosystem. This study seeks to fill the gap by examining a traditional service firm's platform ecosystem strategy, including both the behavior and decision rationale behind it. This paper presents a case study of Colour Life, the biggest community service platform in the world, which has grown rapidly by building a platform ecosystem. The case analysis uncovers several important lessons that can help traditional service firms to transfer to build a platform ecosystem.