Do Development Strategies Influence the Performance of Mobile Apps? Market Status Matters

  • Bei Luo
  • Xiaoke ZhangEmail author
  • Lele Kang
  • Qiqi Jiang
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 11589)


There is substantial academic interest in modeling the determinants of mobile apps’ success. However, few relative researches explored the impact of development strategies and market status of mobile apps on their market performance. This paper adopted text mining technique and Boston Consulting Group (BCG) Matrix to measure the divergence of a development strategy and market status, respectively. Furthermore, we construct a multivariable linear regression model of performance of apps using data from five mobile platforms: Mumayi, Baidu mobile assistant, 360 mobile assistant, Eoemarket, and App China. The result shows that apps of Stars require convergent development strategies to attract potential consumers while more generally, the divergent development strategies benefit apps in other quadrants of the BCG Matrix, namely Cash Cows, Problem Children and Dogs.


Development strategy BCG Matrix Mobile app performance 



The work described in this paper was fully supported by Jiangsu Social Science Foundation (16TQC002).


  1. 1.
    Ghose, A., Han, S.: Estimating demand for mobile applications in the new economy. Manag. Sci. 60(6), 1470–1488 (2014)CrossRefGoogle Scholar
  2. 2.
    Zhou, G., Song, P., Wang, Q.: Survival of the fittest: understanding the effectiveness of update speed in the ecosystem of software platforms. J. Organ. Comput. Electron. Commer. 28(3), 234–251 (2018)CrossRefGoogle Scholar
  3. 3.
    Lee, G., Raghu, T.: Determinants of mobile apps’ success: evidence from the app store market. J. Manag. Inf. Syst. 31(2), 133–170 (2014)CrossRefGoogle Scholar
  4. 4.
    Kim, J.: Patterns of innovation in digital content services: the case of app store applications. Innov. Manag. Policy Pract. 14(4), 540–556 (2014)CrossRefGoogle Scholar
  5. 5.
    Palia, A., Ryck, J., Mak, W.: Interactive online strategic market planning with the web-based boston consulting group (BCG) matrix graphics package. Dev. Bus. Simul. Exp. Learn. 29, 140–142 (2002)Google Scholar
  6. 6.
    Tan, A.: Text mining: the state of the art and the challenges. In: Proceedings of the PAKDD (1999)Google Scholar
  7. 7.
    Maalej, W.: Bug report, feature request, or simply praise? On automatically classifying app reviews. In: 2015 IEEE 23rd International Requirements Engineering Conference, pp. 116–125 (2015)Google Scholar
  8. 8.
    Finkelstein, A., et al.: App store analysis: mining app stores for relationships between customer. Business and Technical Characteristics. UCL Res. Note 14(10), 1–24 (2014)Google Scholar
  9. 9.
    Kim, J., Park, Y., Kim, C.: Mobile application service networks: apple’ s App Store. Serv. Bus. 8(1), 1–27 (2014)MathSciNetCrossRefGoogle Scholar
  10. 10.
    Gallouj, F.: Innovation in the Service Economy: The New Wealth of Nations. Edward Elgar Publishing Limited (2002)Google Scholar
  11. 11.
    Dias, L., Gerlach, M., Scharloth, J., Altmann, E.: Using text analysis to quantify the similarity and evolution of scientific disciplines. R. Soc. Open Sci. 5(1), 171545 (2018)CrossRefGoogle Scholar
  12. 12.
    Hoberg, G., Phillips, G.: Product market synergies and competition in mergers and acquisitions: a text-based analysis. Revision Finan. Study 23(10), 3773–3811 (2010)CrossRefGoogle Scholar
  13. 13.
    Mutandwa, E., Kanuma, N.T., Rusatira, E., Mugenzi, P., Govere, I., Foti, R.: Analysis of coffee export marketing in Rwanda: application of the Boston consulting group matrix. Afr. J. Bus. Manag. 2, 210–219 (2009)Google Scholar
  14. 14.
    Hambrick, D.C., MacMillan, I.C., Day, D.L.: Strategic attributes and performance in the BCG matrix—a PIMS-based analysis of industrial product businesses. Acad. Manag. J. 25(3), 510–531 (1982)Google Scholar
  15. 15.
    Bowles, S.: Behavior, Institutions, and Evolution, 1st edn. Princeton University Press, New York (2004)Google Scholar
  16. 16.
    Sun, J.M., Qiu, K.: Market problems of competitive monopoly in the internet economy. Business Economy (2013)Google Scholar
  17. 17.
    Su, Z., Jin, W.J., Sun, B.W.: Hierarchical Monopoly and Competition: Characteristics of Internet Industry’s Market Structure-Analysis of Internet Platform. Management World (2018)Google Scholar
  18. 18.
    Rogers, E.M.: Diffusion of Innovations, 3rd edn. Free Press, New York (1983)Google Scholar
  19. 19.
    Davis, F.D.: Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Q. 82(6), 319–340 (1996)Google Scholar
  20. 20.
    Jackson, B.: Build customer relationships that last. Harvard Bus. Rev. 11(12), 78–92 (1985)Google Scholar
  21. 21.
    Klemperer, P.D.: Markets with consumer switching cost. Quart. J. Econ. 102(2), 375–394 (1987)CrossRefGoogle Scholar
  22. 22.
    Peneder, M.: Competition and innovation: revisiting the inverted-U relationship. J. Ind. Compet. Trade 12(1), 1–5 (2012)CrossRefGoogle Scholar
  23. 23.
    Hashmi, R.: Competition and innovation: the inverted-u relationship revisited. Rev. Econ. Stat. 95(5), 1653–1668 (2013)CrossRefGoogle Scholar
  24. 24.
    Zheng, C.D., Wang, Q., Liu, W.X., Ni, L.L., Wu, Y.Z.: Influences of characteristics of e-business market on product innovation: an empirical study. J. Manag. Sci. (2014)Google Scholar
  25. 25.
    Jiang, Q., Tan, C.H., Wei, K.K.: Cross-website navigation behavior and purchase commitment: a pluralistic field research. In: Proceedings of Pacific Asia Conference on Information Systems 2018 (2018)Google Scholar
  26. 26.
    Zhang, W., Kang, L., Jiang, Q., Pei, L.: From buzz to bucks: the impact of social media opinions on the locus of innovation. Electron. Commer. Res. Appl. 30, 125–137 (2018)CrossRefGoogle Scholar
  27. 27.
    Kang, L., Jiang, Q., Tan, C.H.: Remarkable advocates: an investigation of geographic distance and social capital for crowdfunding. Inf. Manag. 54(3), 336–348 (2017)CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.School of Information ManagementNanjing UniversityNanjingChina
  2. 2.Department of DigitalizationCopenhagen Business SchoolFrederiksbergDenmark

Personalised recommendations