Open Access
Platform-Driven Digital Distribution Systems And Their Influence On Industry Structure Transformation And Competitive Dynamics: A Conceptual Framework
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Department of Computer Science, Kathmandu Valley Institute of Technology, Nepal
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Faculty of Information Systems, Nepal Advanced Science University, Nepal
Abstract
The emergence of digital distribution platforms has fundamentally reconfigured market structures, altering inter-firm competition, value allocation mechanisms, and industry boundaries. This paper investigates how digital distribution platform emergence influences market structure evolution and competitive outcomes among incumbent and entrant firms. Drawing exclusively on established theories of platform economics, industrial organization, and strategic management, the study synthesizes insights from platform-based disruption, two-sided market theory, and evolutionary market dynamics. The analysis conceptualizes digital platforms as intermediating infrastructures that reduce search frictions, reshape consumer choice architecture, and intensify competitive pressure through network effects and complementor expansion. Methodologically, the paper adopts a theory-driven integrative review and analytical modeling framework, supported by empirical insights from prior industry studies and econometric approaches such as survival and regression analysis frameworks (Cox, 1972; Allison, 2014). Findings suggest that platform emergence leads to (i) market concentration in platform owners, (ii) fragmentation among downstream producers, and (iii) intensified price and visibility competition driven by algorithmic prominence mechanisms. The study further highlights how inter-firm competition shifts from product-based differentiation to ecosystem participation and access control. The paper contributes to platform strategy literature by offering a consolidated framework explaining how digital intermediaries reshape competitive hierarchies and industry evolution.
How to Cite
Adhikari, D. S., & Shrestha, D. N. (2026). Platform-Driven Digital Distribution Systems And Their Influence On Industry Structure Transformation And Competitive Dynamics: A Conceptual Framework. Frontiers in Strategic Management, 3(02), 10–15. Retrieved from https://irjernet.com/index.php/fsm/article/view/422
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