Building a Platform Business Case

Platform business model

A framework that facilitates value-creating interactions between external producers and consumers.

Scalability

The ability for platforms to grow rapidly as network effects increase value with more participants.

Cost Efficiency

Lower operational costs as platforms do not directly own the products being sold.

Flexibility

The ease of innovating and adapting to changes in market demands or technology in a platform business.

Building the Ecosystem

The challenge of attracting users and partners to create a vibrant platform, particularly in early stages.

Governance

The establishment of rules and processes for interactions on a platform to ensure fairness and compliance.

Competition

The necessity to differentiate a platform from competitors to sustain growth and value.

Airbnb and Uber

Examples of successful platforms that illustrate the effectiveness of platform business models through unique user experiences.

Dynamic of platform business models

Understanding how these models work is crucial for businesses looking to pursue a platform strategy.