CIMA E2 Syllabus A. Business models and value creation - Ecosystem Archetypes - Notes ^{4 / 7}

Features of the different ecosystem archetypes:

1. Hornet's nest - Loose orchestration and high complexity. Value is transferred directly to each participant. There are high barriers to entry.

   An example of hornet’s nest would be online streaming devices. This is because there is high complexity and loose orchestration. The online streaming environment is highly complex and difficult to orchestrate due to different laws in different countries regarding content that can be streamed.

   Strategies - Participants should implement strategies focusing on keeping their offering relevant and responsive to changing customer preferences. This entails a commitment to development of the internal capabilities needed to deliver what customers want.

2. Shark tank - Loose orchestration and low complexity. There is no orchestrator and the barriers to entry are low. Identifying and making the best use of opportunities and having strong connections is important to survive. Customers have no loyalty.

   Strategies - Should focus on the need for strong differentiation and brand awareness to ensure retention and loyalty. Participants should seek to unilaterally build new relationships with partners to support the ecosystem.

3. Lion's pride - Tight orchestration and high complexity. The orchestrator sets the rules, monitors the ecosystem, and distributes value to the participants. There are high barriers to entry.

   For example, if there was a main contractor in the industry that handed out contracts being given out AND took a cut from all the contracts that were given out.

   Strategies - Participants in this type of ecosystem should ensure that their strategies align with the objectives of the orchestrator. This should help to ensure that the participant remains useful to the orchestrator. Combining this with differentiation will help to ensure its offering remains relevant.

4. Wolf pack - Tight orchestration and low complexity. There is an orchestrator but the barriers to entry are low.

   Strategies - Participants should strive to strengthen their brands in order to defend their position and differentiate their offering where possible. Creating strong relationships with the orchestrator(s) is important given the ease with which others may enter the ecosystem.