Table of Contents
What is the meaning of Platform Economy?
Platform economy is the tendency for commerce to increasingly move towards and favor digital platform business models. Platforms are underlying computer systems that can host services that allow consumers, entrepreneurs, businesses and the general public to connect, share resources or sell products.
What is an example of a platform business?
Google, Facebook, YouTube, Airbnb, Uber, eBay, Alibaba, PayPal make use of the platform business model. In this article, I use the terms “platform business model,” “platform business” and “platform” interchangeably. Economists also call them multi-sided platforms (MSP).
Why is platform important to the economy?
The strength of the platform economy lies in its ability to eliminate trade barriers by using increased information sharing between different players and circulation of data to its advantage. This creates a much more open economic system, with much greater participation of its users3.
What does it mean to be a platform business?
A platform is a business model that creates value by facilitating exchanges between two or more interdependent groups, usually consumers and producers. Like Facebook, Uber, or Alibaba, these businesses don’t directly create and control inventory via a supply chain the way linear businesses do.
What are platform markets?
Platform markets are characterized by the existence of indirect network effects that connect two or more market sides through a platform that internalizes these feedback effects.
How big is the platform economy?
A 2017 study estimated that worldwide, about 70 million people have registered on the remote labour platforms. The global gig economy, in 2018, generated $204 billion in gross volume (with vehicle for hire services comprising 58\% of this value), while this number is expected to grow to $455 billion in 2023.
What are platform products?
Product platforms are a collection of modules or parts that are common to a number of products. This commonality is developed intentionally to achieve desired effects in order to create value. Within that process, product platform resources have to be bundled with other resources and/or capabilities.
What is a strategic platform?
A strategic platform is the blue‐print for managing an established business or new product introduction. This article indicates the kinds of problems companies experience if they do without such a blueprint. A demonstrably successful procedure for defining a strategic platform is described…
What is a one sided platform?
A one-sided digital platform consists of just one group of participants from whom it extracts its value. A great example of a single digital platform is a pure B2C eCommerce venture, such as www.asos.com.
What is platform industry?
We define external (industry) platforms as products, services, or technologies that act as a foundation upon which external innovators, organized as an innovative business ecosystem, can develop their own complementary products, technologies, or services.
When did the platform economy start?
Online market platforms such as Craigslist and eBay were launched in the 1990s. Forerunners to modern social media and online collaboration platforms were also launched in the 1990s, with more successful platforms such as Myspace and Wikipedia emerging in the early 2000s.
What is the platform economy?
Also known as the digital platform or online platform economy, the platform economy is the economic and social activity facilitated by platforms.
What is the digital platform economy?
Also known as the digital platform or online platform economy, the platform economy is economic (the buying, selling and sharing of goods and services ) and social activity facilitated by platforms. Such activity is wider than just commercial transactions, including for example online collaboration on projects such as Wikipedia.
What is a platform based business model?
A platform business model is a plan for creating revenue by allowing registered members to create content that can be consumed by a specific user group or general audience.
What are examples of business platforms?
Some of today’s most successful businesses are platforms. One example is Amazon, which connects buyers and sellers of goods in the Amazon Marketplace, while Amazon’s Kindle also connects readers with content providers. So does Apple’s iTunes. And both the iPhone and Android are platform that connect software developers with consumers.