Platform strategy

Definition

A platform strategy refers to the use of digital platforms as a central component of a company's business strategy. A platform is used to connect various players, such as customers, suppliers and partners, and thus create value.

Background

Platform strategies have become significantly more important in recent years, particularly as part of digital transformation. These strategies are based on the idea that the value of a network increases with the number of participants. Examples of successful platform strategies include companies such as Amazon, Google and Airbnb, which have achieved enormous network effects through their platforms.

Areas of application

Platform strategies are used in many industries, particularly where digital interactions and network effects play a central role. These include e-commerce, social media, fintech, and the sharing economy. Industrial companies use platform strategies to optimize their value chains and develop new business models.

Benefits

A key benefit of a platform strategy is the ability to utilize network effects to achieve exponential growth. Platforms enable companies to scale faster and enter new markets. They can also develop innovative products and services by networking stakeholders.

Challenges

However, implementing a platform strategy can also present challenges. This includes high initial investments, the need to reach a critical mass of users, and ensuring data and system security. One possible solution is to gradually introduce the platform and focus on core markets before expansion takes place.

Examples

A specific example of the application of a platform strategy in an industrial company is a B2B dealer portal. Such portals connect manufacturers, suppliers and customers and enable efficient transactions and the exchange of information. Another example is a self-service portal that enables customers to independently manage their orders and services.

Summary

Platform strategies are a central part of the modern business world and offer companies the opportunity to use network effects to promote growth and innovation. Despite the challenges associated with implementing a platform strategy, the benefits outweigh scalability and new business opportunities.