It is not possible nowadays to imagine the Internet without Wikipedia, which is the prime online information source for millions of people. It is undoubtedly one of the most popular websites in the world and accommodates a crucial number of readers and contributors. Beutler (2014) compares the Wikipedia to “the passion project of a volunteer community committed to developing a universal knowledge base”. Wikipedia has grown to be the sixth most popular website worldwide behind websites such as Google or Yahoo! (500 Global Sites Index, 2013). The infrastructure of Wikipedia enabled the contributors to build the largest and most up to date encyclopaedia in the world. Wilson &Likens (2015) pinpoint the accuracy of the website, which is similar to the traditional reference sources like for instance Encyclopaedia Britannica.
By using different models and concepts, this paper tries to find out the feasible reasons for its ultimate success. Based on the Harvard Business Review Case Study on Wikipedia, the Resource- Based View model is utilized, where the strategic capabilities of the Wikipedia are analysed. Also, this paper argues how Blue Ocean strategy can provide a sound explanation of the apparent strategic success of the most popular online encyclopaedia.
Table of Contents
1. Introduction
2. Resource Based View Model
2.1 VRIN
2.2 SWOT
3. Blue Ocean Strategy
3.1 Differentiation and low cost
3.2 Four-action strategy framework
3.3 The three strategy propositions
4. Chaos Theory
5. Conclusion
Objectives and Research Themes
This paper aims to investigate the strategic success factors of Wikipedia by applying established management models. It examines why Wikipedia has become the most popular online encyclopaedia by analyzing its internal capabilities, competitive strategy, and growth dynamics within a rapidly changing digital environment.
- Analysis of Wikipedia's strategic resources using the Resource-Based View (RBV) and VRIN framework.
- Evaluation of strengths, weaknesses, opportunities, and threats through a SWOT analysis.
- Examination of how Blue Ocean Strategy explains Wikipedia's market differentiation and cost-structure advantages.
- Application of Chaos Theory to understand the organization's explosive growth and networked operating model.
Excerpt from the Book
2. Resource- Based View Model
The Resource- Based View model (RBV) postulates that resources are valuable, rare, inimitable and non-substitutable (VRIN) and can build a platform upon which firms may accomplish a competitive advantage (Brown, 2013; Callaway& Jagani, 2015). Resource based view fundamentally tends to highlight that a possession of strategically useful, heterogeneous, and not replicated by competitors’ resources constitutes the resource position of the firm among rivalry companies (Apostolakis et al, 2012). Simon et al, (2012) gives example of Mercedes Benz car group as a company where strategic capabilities such as innovation, technical knowledge and quality of service were utilized to gain a competitive advantage.
2.1 VRIN
Value
The greatest value provided by Wikipedia is its availability to anyone without any charge. The advantage is that Wikipedia is a free encyclopaedia and can be freely read without getting permission from any other party, therefore the users are able to access it anytime and share with others without any constrains. Wikipedia is being led by the main innovators and leaders hence it has become a global movement to free knowledge.
Summary of Chapters
1. Introduction: This chapter introduces Wikipedia as a global knowledge platform and outlines the research objective to uncover its success factors using specific management frameworks.
2. Resource Based View Model: This section assesses Wikipedia's competitive position by evaluating its resources according to the VRIN framework and performing a SWOT analysis.
3. Blue Ocean Strategy: This chapter explores how Wikipedia breaks the value-cost trade-off and utilizes specific strategic frameworks to create uncontested market space.
4. Chaos Theory: This chapter examines Wikipedia's explosive growth and organizational flexibility through the lens of chaos and complexity theory.
5. Conclusion: This chapter synthesizes the findings, confirming that the alignment of value, profit, and people propositions under a low-cost, differentiated strategy drives Wikipedia's success.
Keywords
Wikipedia, Resource-Based View, VRIN, SWOT Analysis, Blue Ocean Strategy, Chaos Theory, Competitive Advantage, Knowledge Management, Digital Strategy, Strategic Capabilities, Innovation, Online Encyclopaedia, Wikimedia Foundation, Market Differentiation, Organizational Growth.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on analyzing the strategic success of Wikipedia as the world's most popular online encyclopaedia through the application of various management theories.
Which management frameworks are utilized in the analysis?
The analysis employs the Resource-Based View (RBV) with the VRIN framework, SWOT analysis, Blue Ocean Strategy, and Chaos Theory.
What is the primary research objective?
The primary goal is to identify the feasible reasons behind Wikipedia's ultimate success and how it maintains its competitive advantage over other encyclopaedias.
How is the Resource-Based View applied to Wikipedia?
It is used to analyze the organization's strategic capabilities, specifically assessing whether its resources are valuable, rare, inimitable, and non-substitutable.
What does the Blue Ocean Strategy section cover?
It covers how Wikipedia simultaneously pursues differentiation and low cost, and utilizes the four-action framework (eliminate-reduce-raise-create) to redefine the industry.
How does Chaos Theory explain Wikipedia’s growth?
It explains the website's explosive growth as a result of unpredictable, non-hierarchical, and networked dynamics rather than traditional, rigid organizational structures.
What is the significance of the "eliminate" action in Wikipedia's strategy?
Wikipedia eliminated access costs, allowing users free entry compared to paid traditional competitors, which was a critical factor in gaining market dominance.
What are the main "threats" identified for Wikipedia?
Threats include the emergence of scholar-approved competing websites, a declining number of active contributors, and potential tensions within the community between long-time and new users.
- Arbeit zitieren
- MBA graduate Kat Szydlowska (Autor:in), 2017, The Success of Wikipedia. Models and Concepts, München, GRIN Verlag, https://www.grin.com/document/421552
