Implementing platform businesses
How can you scale platform businesses?
Every platform business must overcome the well-known chicken-and-egg problem. For many of the failed platform initiatives we have analysed, companies have not been fully aware of the chicken-and-egg problem. In the case of a product marketplace like Amazon, for example, you cannot attract sellers without buyers, and you cannot attract buyers without sellers. Scaling a platform is all about overcoming this deadlocked situation and establishing strong network effects.10 Once network effects kick in, the different market sides on the platform naturally attract each other. So how can a platform be started and network effects established? In the following, we present 14 scaling ...
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