Akamai's Edge (A)
Posted: 20 Mar 2012
Date Written: December 20, 2011
In 2009, Paul Sagan, COE of Akamai, the leading online content delivery network with a 60% market share, needs to decide how to respond to aggressive entry in its market, whether and how to pursue the explosive growth in online video, and whether to stay with its distributed network model or move towards its competitors' more centralized design.
Learning Objective: To explore sources of competitive advantage, their implications for how to respond to entry, and the interaction with beliefs, vision, and mental models. To explore how the effectiveness of network effects as a competitive advantage may be reduced by market growth and by alternative business models.
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