Week 8

• What is a platform business?

  A business model connecting consumers and producers
• Give an example of a platform business.

  Uber and eBay
• What is the primary role of consumers in a platform business?

  To partake in value and offerings
• What is the primary role of producers in a platform business?

  To provide inventory and services
• How does the platform business model differ from linear businesses?

  Platforms enable exchanges that increase value
• Define a Multi-Sided Platform (MSP).

  A model facilitating exchanges between interdependent groups
• What is a key feature of Multi-Sided Platforms?

  Presence of network effects
• What types of interactions do platforms facilitate?

  Exchanges for goods, services, and information
• What are two key types of platform revenue models?

  Commission fees and subscription models
• What is meant by "freemium" in platform business models?

  Initial product offered for free to attract users
• What is the significance of "lock-in" in platform businesses?

  Encourages users to stay on the platform
• List the two key characteristics of a multisided platform as per Hagiu (2014).

  Participants are customers and enable direct interaction
• What differentiates a product platform from a multisided platform?

  A product platform lacks direct interactions
• Describe the shift from pipeline businesses to platforms.

  From linear activities to community-owned resources
• How do platforms create ecosystem value?

  By maximizing total value through interactions
• What are historical examples of platforms?

  Medieval fairs for sellers to offer goods
• Why can large platforms lead to antitrust issues?

  Due to market influence and seller regulation
• Compare the strategies of Uber and Airbnb in dealing with public policies.

  Uber confronts, Airbnb collaborates with regulators
• What is the advantage of operating a platform business in terms of cost?

  Low operating costs and high margins
• Identify the five broad types of platform business models.

  Commission, subscription, freemium, listing fees, advertisement
• Recap the significance of platforms in the business landscape.

  Facilitate interaction and leverage network effects