Platform Strategy: Solving the Chicken-and-Egg Problem
Source: mitsloan.mit.eduadvanced
A platform isn't a product; it's an environment where groups create value for each other. This strategy is key for marketplaces (Uber) or ecosystems (iOS) where value grows with users.
A platform strategy connects groups so they benefit from each other's presence, unlike products where value is self-contained. It's the core challenge for marketplaces (eBay), social networks (Facebook), or developer ecosystems (Android), where one user's value depends on others. The biggest footgun is ignoring the chicken-and-egg problem: how to attract one side of the market when the other side isn't there yet.
Read the original → mitsloan.mit.edu
- #platform strategy
- #product strategy
- #network effects
- #two-sided markets
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