Subject category:
Strategy and General Management
Published by:
INSEAD
Version: 12.2003
Length: 21 pages
Data source: Published sources
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https://casecent.re/p/7867
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Abstract
The case describes the introduction of smart cards in The Netherlands from 1995 till 2002. It discusses the early stage when there were two rival platforms, Chipper and Chipknip, the migration to the Chipknip platform, the relaunch in 2001, and the early take-off in 2002. It also describes the technology of smart cards, the supply chain and the upcoming changes in payment systems in 2002. The case allows a discussion of the difficulties in launching a product with network externalities when there are rival platforms with neither platform having a decisive lead. One can discuss the launch process, the economics of pre-emption advantages, the tactics to get to critical mass, and the competitive inter-reactions. The discussion of the various payment systems also allows an analysis of the value propositions of each product.
About
Abstract
The case describes the introduction of smart cards in The Netherlands from 1995 till 2002. It discusses the early stage when there were two rival platforms, Chipper and Chipknip, the migration to the Chipknip platform, the relaunch in 2001, and the early take-off in 2002. It also describes the technology of smart cards, the supply chain and the upcoming changes in payment systems in 2002. The case allows a discussion of the difficulties in launching a product with network externalities when there are rival platforms with neither platform having a decisive lead. One can discuss the launch process, the economics of pre-emption advantages, the tactics to get to critical mass, and the competitive inter-reactions. The discussion of the various payment systems also allows an analysis of the value propositions of each product.