Platform business model : analysis and application -

Abstract

Traditional business models and marketing frameworks serve as great foundation for any new venture entering the business world; however, they are getting outdated and disrupted by new and powerful forces, the platforms. No longer a business can set up a store and expect customers to flow in with a help of few TV commercials; much more is required. Customers are becoming very smart and dismissive of push advertising. They demand respect and a clear benefit, they want to be part of a community and make a difference. To make money, businesses need to do more than seduce, they need to earn customers’ loyalty. The platform model, let by tech startups, is designed to satisfy all players involved. It lives up to its name and serves as a stage for users to get on and do their business in a mutually beneficial manner. The challenge is structuring the platform in a way that attracts customers, or users, without any effort. If it is indeed done properly, platforms don’t even require marketing; it is innate. My goal is grasp the essence of this new and exciting platform era and understand what it takes to succeed within it.