Preprint / Version 1

The Platform Strategy on EC Market for MRO

A Case Study of MonotaRO Co., Ltd.

##article.authors##

  • Hirofumi Ota College of Humanities and Social Sciences, Ibaraki University

DOI:

https://doi.org/10.51094/jxiv.430

Keywords:

indirect material, MRO, EC, platform, Winner-Take-All, disturbance factor

Abstract

What is the source of competitiveness of MonotaRO Co., Ltd. (MonotaRO), the largest EC company for industrial MRO? This paper aimed at unveiling the business strategy of this company from the point of view of three Winner-Take-All (WTA) disturbance factors, multihoming cost, the number & size of niche market, and market growth. As a result, it is implied that MonotaRO maintains current customer base and induces new clients by fulfilling a WTA factor on multihoming cost, while at the same time establishes the current steadfast position by fulfilling a WTA disturbance factor on the number & size of niche market. On the other hand, small & medium-size specialized trading companies or latecomers surround MonotaRO may rather fulfill a WTA disturbance factor on market growth, thus close attention to market trends should be required since sustainable growth going forward of MonotaRO may not necessarily be
explainable.

Conflicts of Interest Disclosure

The author declares no conflicts of interest associated with this manuscript.

Downloads *Displays the aggregated results up to the previous day.

Download data is not yet available.

References

Asukuru kabushikigaisha. (2023). Gyoseki hairaito [Performance highlight] (in Japanese). Retrieved 2023/02/01 from https://www.askul.co.jp/kaisya/ir/graph/performance.html#t01

Dierickx, I., and Cool, K. (1989). Asset stock accumulation and sustainability of competitive advantage. Management Science, 35, 1504-1511. http://dx.doi.org/10.1287/mnsc.35.12.1504

Eisenmann, T., Parker, G., & Van Alstyne, M. W. (2007). Tsu saido purattofomu semryaku: ‘sijo no nimensei’ no dainamizumu wo ikasu [Strategies for two-sided markets]. (N. Matsumoto, Trans.)

Daiamondo Habado Bijinesu Rebyu [Diamond Harvard Business Review], June Issue, 68-81. (Original work published 2006)

Fukushima, M. (2019). Purattofomu bijinesu - Appuru no appu sutoa no tenkai - [Platform business - App store deployment of Apple -]. In Tohoku daigaku keieigaku gurupu (Eds.), Kesu ni manabu keieigaku dai 3 pan [Management learned from the cases the third edition], (pp.151-168). Yuhikaku Bukkusu (in Japanese).

Gawer, A., & Cusumano, M. A. (2005). Puratto fomu ridashippu: inobeshon wo michibiku atarashii keiei senryaku [Platform leadership: How Intel, Microsoft, and Cisco drive industry innovation]. (T. Kobayashi, Trans.) Yuhikaku. (Original work published 2002)

Gawer, A., & Cusumano, M. A. (2014). Industry platforms and ecosystem innovation. Journal of Product Innovation Management, 31(3), 417-433. https://doi.org/10.1111/jpim.12105

Hitotsubashi bijinersu sukuru. (2018). 2018nendo pota sho jusho kigyo jigyo repoto [FY2018 Porter prize award-winning company business report] (in Japanese). Retrieved 2022/11/09 from https://www.porterprize.org/pastwinner/2018/12/06125502.html

Imai, K., & Kokuryo, J. (1994). Puratto fomu bijinesu [Platform business]. Joho tsushin sogo kenkyujo (in Japanese).

Ippan shadan hojin CFO kyokai (2019). Kansetsuzai kosuto no manejimento ni kansuru jittai chosa no kekka to kosatsu wo happyo [Presentation of results and consideration on fact-finding survey related to the management of indirect materials] (in Japanese). Retrieved 2022/11/07 from https://www.cfo.jp/wordpress/wp-content/uploads/2019/10/release_20191001.pdf

IT torendo henshubu (2023). Kobai ni okeru chokusetuzai toha? kansetsuzai toha? [What is direct & indirect materials?] (in Japanese). Retrieved 2023/01/30 from https://ittrend.jp/purchasing/article/224-0014

Katz, M. L., & Shapiro, C. (1985). Network externalities, competition, and compatibility. American Economic Journal, 75(3), 424-440.

Katz, M. L., & Shapiro, C. (1994). System competition and network effects. Journal of Economic Perspectives, 8, 93-115. https://doi.org/10.1257/jep.8.2.93

Kabushikigaisha MonotaRO [MonotaRO Co., Ltd.] (in Japanese). Retrieved 2022/11/2 from https://corp.monotaro.com/

Kabushikigaisha MonotaRO. (2023). Kessan setsumeikai siryo [Financial results briefing report] (in Japanese). Retrieved 2023/02/01 from https://corp.monotaro.com/ir/upload_file/m004-m004_01/kessan2021Q4_2.pdf

Kabushikigaisha Yamazen. (2023). Yamazen togo houkokusho [Yamazen integrated report] (in Japanese). Retrieved 2023/02/01 from https://www.yamazen.co.jp/archives/001/integrated_report_j_2022.pdf

Keizaisangyosho. (2017). Shogyo tokei [Commercial statistics] (in Japanese). Retrieved 2023/01/11 from https://www.meti.go.jp/statistics/tyo/syougyo/index.html

Keizaisangyosho. (2022). Reiwa sannendo denshi shotorihiki ni kansuru shijo chosa [Reiwa 3 fiscal year e-commerce market research] (in Japanese). Retrieved 2023/01/18 from https://www.meti.go.jp/press/2022/08/20220812005/20220812005-h.pdf

Kokuryo, J. (1999). Opun akitekucha senryaku - nettowaku jidai no kyogyo moderu [Open architecture strategy - collaboration model of network era -]. Daiamondosha (in Japanese).

Misumi gurupu. (2023). Zaimu hairaito [Finance highlight] (in Japanese). Retrieved 2023/02/01 from https://www.misumi.co.jp/ir/financial/highlight.html

Mizoshita, H. (2017). Purattofomu bijinesu to bijinesu moderu ni kansuru kenkyu rebyu [A review of literature on platform business and business model]. Hiroshima Daigaku Manejimento Rebyu [Hiroshima university management review], 18, 33-46 (in Japanese).

Motohashi, K. (2022). Dejitaruka ga seizogyo ni ataeru eikyo - purattofomu riron niyoru kento - [Impact of digitalization on manufacturing - Examination by platform theory -]. Kikai shinko kyokai keizai kenkyujo shorombun [Japan society for the promotion of machine industry economic research institute], 30, November (in Japanese).

Negoro, T., & Kato, K. (2010). Purattofomu kan kyoso ni okeru gijyutsu ‘hi’ ketteiron no moderu - Sohutowea seihin ni okeru WTA no mekanizumu to taiko senryaku [Technology indeterminism model on cross-platform competition - WTA mechanism and counter strategy on software products]. Waseda Kokusai Keiei Kenkyu [Waseda international management study], 41, 79-94

(in Japanese).

Negoro, T., & Osuga, Y. (2018). Nettokei purattofomu no WTA (wina teikusu oru) keisei mekanizumu - Dejitaru kontentsu gyokai wo jirei toshita riron moderu no hatten - [WTA (Winner Takes All) formation mechanism on internet platform]. Waseda Kokusai Keiei Kenkyu [Waseda international management study], 49, 17-40 (in Japanese).

Parker, G. & Van Alstyne, M. (2014). Platform strategy. SSRN Electronic Journal, January. https://doi.org/10.2139/ssrn.2439323

Shimizu, D. (2021). EC kyojya monotaro no sugosugiru ‘zurashi senryaku’, naze chakujitsu ni fan ga hueteikunoka? [Amazing shift strategy of MonotaRO, EC strong. Why MonotaRO increases 12 fans steadily?] (in Japanese). Retrieved 2022/11/08 from

https://www.sbbit.jp/article/cont1/65023

Torasuko nakayama kabushikigaisha. (2023). Kessan [Settlement] (in Japanese). Retrieved 2023/02/01 from https://www.trusco.co.jp/ir/financial/settlement/

Yoshino, H. (2022). Seicho no kagi ha shinazoroe & zaiko no kyoka - MonotaRO no butsuryu senryaku [The key to growth is reinforcement of assortment & inventory - logistics strategy of MonotaRO] (in Japanese). Retrieved 2022/11/04 from

https://www.lnews.jp/2022/02/o02001saizen.html?doing_wp_cron=1668067832.0638270378112792968750

Yuasa shoji kabushikigaisha. (2023). Gyoseki hairaito [Performance highlight] (in Japanese). Retrieved 2023/02/01 from https://www.yuasa.co.jp/ir/finance/highlight.html

Posted


Submitted: 2023-06-29 01:53:33 UTC

Published: 2023-06-30 01:06:41 UTC
Section
Economics, Business & Management