Staging Two-sided Platforms Harvard Case Solution & Analysis

Firms that are seeking to to develop other two-single sided the platforms are confronted with the menacing call. Promising users on each side of will not invest in the platform up those then while they are sure is, there will be sufficiently, users on other side. Traditional strategies for the deal with this dilemma - subsidizing of users or ensuring their exclusive affiliation - are costly and riskiest. Describes the less costly staged by strategies at construction of two-single sided the platforms. With the function "to the supplier up to two to single sided platform the" strategy of, the firm, begins in as a supplier of sale of products or services,, to customers on a only from one side out of potential - the, but not yet an existing - two to single sided by the network. After addition, first side of the has firmly established itself, this proves the, it is easier,, to attract users who so that another side of the network of's website during stage one two. With the function of "merchant up to two to single sided platform the" strategy of, the firm, begins, as a Merchant of purchasing the goods of the many different suppliers and resale of them, into the process of soaking up the in itself all-risk out of platform failure. In stage of two, firm shifts the risk and the control back, that some or all out of her to suppliers, giving them more responsibility for the management inventory of, pricing, and merchandising their goods. Presents by examples and offers guiding principles for the, when should I use each strategy. «Hide
on Thomas R. Eisenmann, Andrey Hadjiu 12 pages. Publication Date: July 10, 2007. Prod. #: 808 004-PDF-ENG

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