Why some platforms succeed and some fail!

I had mentioned in the past that pipeline businesses will struggle to compete in future with platform businesses and they will also need to have some platform of their own to compete. But it does not mean all platforms are successful. While some thrive, others fail.

Platforms thrive upon network effects and there are five key criteria affecting network affects of the platform resulting in the platform to either thrive or die. Those are: 1. Strength of the Network Effects 2. Ability to build Network Clusters 3. Capability to avert disintermediation 4. Ability to stop multi-homing 5. Ability to bridge networks We will go through each of them in the upcoming posts.

#platforms #platformeconomy #platformstrategy #platform #digital #digitalbusiness