1.Is DoCoMo wise to offer its existing mobile phone rivals access to FeliCa?

Yes, it is a good strategic decision for Docomo for several reasons. First, as the case stated, Docomo does not want to bear all the costs, and risks of a first mover. In fact, it might not be able to afford the premium required to hold exclusivity on this technology. Second, by giving rivals access to Felica, Docomo will be able to increase value of this technology due to the network effects. As Felica network and applications proliferates faster, it will easily become the standard in this industry, and since Docomo had a stake on Felica’s Network, it will be able to make profits from the use of this technology. In addition, Docomo will still be able to have a competitive advantage by being able to learn about the new Felica applications before competitors and to start negotiations before its rivals.

2.Is search a winner-take-all business?

Search is not a winner- take all business because of the following reasons:
First, multi-homing costs are low for users on both sides. End users can use many search engines at the same time at no cost, and switching costs are also zero.
Cross-side and same-side Network Effects are not strong and are neutral. Search engines do not have more value to people if more people are using it. People will select search engines based on performance or maybe new added features. Some people might have some preference for some new features or novelties provided by search engines. There is room for special features in the engines that might satisfy some special needs although, today, most search engines are offering standardized features. Thus, search is a multi-homing platform.