Lernmaterialien für Fundamentals of Digi an der Universität Passau

Create a business around products or services that benefit a single set of users 

• Later convert the business into a platform by attracting a second set of users (often these are advertisers) who want to engage in interactions with the first set

• Commercially attractive and more profitable
• Reduced dependency from classic trade, risk management
• More and direct consumer interaction, strong strategic rational against Chinese competitors (CLV focus)
• Stronger control over quality of brand representation

Firm<->Consumer<->producer

producer->Consumer 

Attract producers, who can induce their customers to become users of the platform 

• Example: 
  • Platform provides businesses with tools for customer relationship management 
  • Platform helps the producers to cater to their existing consumer base 
  • Over time producers can attract other new consumers on the networ

Targeting a tiny market that comprises members who are already engaging in interactions 

• High probability of an existing connection between local members provides efficient matchmaking characteristics 
• Example: Facebook started with independent local networks on several universities in the US. interconnection between these networks was the second step.