Strategic Analysis of Mobile Value Added Services (M-VAS) Market in Iran Using the System Dynamics Approach

Subject Areas : Strategic Management Researches

Mohammad Ali  Valafar ¹ (PhD Student in Industrial Management Systems Management, Department of Industrial Management, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran)
naser  hamidi ² (Associate Professor, Department of Industrial Management, Faculty of Management and Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran; (Corresponding Author))
mahmood  alborzi ³ (Associate Professor, Department of Information Technology Management, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran)
Seyed Javad  Iranban Fard ⁴ (Assistant Professor, Department of Industrial Management, Faculty; Economics and Management, Shiraz Branch, Islamic Azad University, Shiraz, Iran)

Received: 2019-02-24 Accepted : 2019-06-12 Published : 2020-03-10

Keywords: Simulation, Modeling, System Dynamics, Mobile Value Added Services, Bass Diffusion Theory,

Abstract :

Despite the launch of mobile app markets in Iran, these markets have not been able to capture a significant market share under a highly competitive environment. Therefore, it is very important for industry managers to review and improve the acceptance process of these markets. After identifying the factors influencing the acceptance and attractiveness of marketplaces, this study examined the network effect by providing a dynamic model based on bass diffusion theory and modeled and simulated the studied market. This was done by presenting dynamic hypotheses, plotting causal loop diagram (CLD), stock-flow diagram (SFD), and entering mathematical equations in Vensim software. Then, after validating and ensuring the correctness of the model's performance, two different policies were implemented in the model. The research findings show that under the pressure of the Play Store, Iranian markets are still forced to improve their services and at the same time try to reduce the competitive distance with it. These marketplaces need to reconfigure their existing resources and core competencies, given the market dynamics and to gain emerging opportunities.

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