Platforms

The core concept of platforms is the existance of mutliple user groups

The value of the platform increases as more users join and interact

Producers attract more producers, customers attract more customers

More producers = more customers and vise versa

Often one user group is subsidized by another f. E. advertisers subsodizing users

The platform facilitates interactions transactions exchange between user segments

Providing value for each user group is essential for a platform to work

Network effects: scalability, positive network effects

Diverse revenue streams

Lower operational costs

Easy expansion

Negative network effects: critical mass requirement (cold start problem)

Disintermediation (bypass risk)

Dependancy on external parties

Regulatory challenges