Multisided platforms (MSPs) are technologies, products or services which create value mainly by forming direct interactions between two or more customer or participant groups. Famous examples of MSPs and the participants they join comprise eBay (buyers and sellers), Airbnb (dwelling owners and renters), the Uber program (professional drivers and users), Facebook (users, advertisers, third party game or content programmers and affiliated third-party sites), and Ticketmaster (event venues and consumers).As these examples demonstrate, MSPs contain some of the biggest and fastest-growing businesses of the previous decade. Why? As a consequence, MSPs regularly occupy privileged positions in their own various industries; most other sector participants depend on MSPs in important ways and revolve about.
This informative article commences with a description of why they are able to bring such high barriers to entry for new participants and MSPs work. It then gives an evaluation of four essential tactical decisions and associated trade-offs that set MSPs apart from other kinds of companies and that every MSP entrepreneur and investor ought to carefully consider. Succeeding the analysis of the factors that drive each of these decisions and using real-world case examples, the writer presents general principles that apply to both startups and incumbent MSPs.
Strategic Decisions for Multisided Platforms case study solution
PUBLICATION DATE: January 01, 2014 PRODUCT #: SMR477-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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