Question 1

As an investor the model that I would go for my business is a two-sided provider regarding both

merchant services and digital wallets.

The three reasons for this choice are:

a. Use of networking effect, as consumers in this business model are using the merchant

service. This means presence of many people using the digital wallets which will result in

creation of more use of merchant service and so, the resultant will be more and higher

demand for digital wallet. As long as digital wallets like bitcoin are ahead the users will not

use other competitor firms.

b. In this model, two different service helps in managing the demand side. Therefore, there is

chance of attaining economies of scale in a way that is more merchants will prefer the use of

bitcoin if more the users are using bitcoin. If the demand to use merchant services decreases,

the service of digital wallet will balance it.

c. This model allows connection between the producer and consumer which can be done

through the use of merchants and digital wallets. This will cover the exchange of

information, goods, services, and currency. This business model can be used for different

purposes. Even if the exchange of currency happens outside the platform, the model is still

viable.

Question 2

GAMEON has to put more focus on mobile game developing.

The three reasons being:

a. Capture the market by Apple’s IOS and Google’s Android is more than any other

platform, hence pushing for a new platform first would not be a profitable decision.
 b. A consumer’s decision to use a platform over others will be application based. That is

a game that is good in this case. Therefore, continual capture of consumers by

GAMEON games will make it much easier to take them to a new platform in the

future.

c. Developers will want to contribute to already established platforms. Hence, it will be

unwise to push a for a new platform.

Question 3

GAMEON’s choice to operate as a platform would mean it competition with underlying iOS and

Android operating systems. Android and iOS operating system support as platforms various

creative applications and also run a multitude of functions that are innovative. A consumer’s

choice of platform is guided by whether it is offering more in terms of functionality than other

platforms and would not look elsewhere for another platform if the one they are on is performing

as they need. As a result, a consumer would opt to stay with a platform that traditionally provide

functions like GPS, music player digital camera, video editing etc. over a new platform which

may not have all these functions a stage initially. Such a platform does not complement but

competes with the platforms that are underlying.

Question 4

Importance of a modular architecture in platform design

Importance of a modular architecture is that is vital in the design of the platform, one that is

successful. A proper modular architecture allows for a coordination mechanism that is invisible
through specification in the interactions and dependencies between the platform and apps. This

gives room for organization of processes/products that are complex at an efficiency level that is

high. A better principle would be the specification of an architecture describing, as a module set,

the program as a whole. A software system that is well-designed has design rules that are visible,

improves by itself, and can be used in the prevention and correction of failures in the market.

The markets can be enhanced in their competitiveness and fairness due to an architecture that

levels the field of play.

Impact of modular architecture in its APIs

Application programming interfaces (APIs) are the medium through which service is provided to

applications by operating systems. There is connection and communication through interfaces of

the modularity when it is working in partitions. There is need to plan out the API’s initial

structure which reduces development time as each team set develops individual APIs. If an

architecture’s foundation is made up of APIs, this allows ability to organize scaling of the app by

addition or removal of a service when required. This preferable rather than having to modify the

entire app. This would allow testing and maintenance to be much faster.

Well-designed APIs in shaping app developer compliance

APIs that are well designed do shape compliance for the app developer. Firms with deadlines

that are tight or with resources that are limited can overlook creation of APIs that are well

designed favoring ones that can be quickly created. An approach of this manner would make it

difficult have developers from an ecosystem that is external to come and build atop the core

platform to widen its presence and service to new markets. An API that is well designed makes it
easy for developers in performing their job and hence more probable for them to be compliant

with the rule and regulations.