How can legacy companies set up the right platform?
One McKinsey report points out 7 out of the 12 largest corporations favour platform operating model. With the success of the Digital Natives like Amazon, Netflix, Airbnb, Uber, etc., pipeline business models are susceptible to lose out to platform businesses at some point of time in the digital world. Competing on marketplaces like Amazon would also reduce them to become a dumb supplier as they do not have much control on the personalization of the presentation and exclusivity. So, how can pipeline incumbents fight back? By creating a Brand Platform of their own. Many companies like Nike, Under Armour, etc have done this successfully. Companies building such platforms should identify how they would orchestrate the partners and the consumers in the ecosystem to come up with the right platform model.