This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Explore a comprehensive MSP Strategy framework by ex-McKinsey & Big 4 consultants. Master critical decisions for platform success in the Digital Age. Multisided Platform (MSP) Strategy is a 34-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download upon purchase.
Enabled by new capabilities in the Digital Age, many organizations are trying to shift from a Products to Platform business model. The drive behind such a shift can also be attributed to the huge success of platform companies—e.g., Amazon, Google, and Apple. These organizations started out as a retailer, search engine, and computer manufacturer, respectively, but later transformed into platform models.
These platforms are referred to as Multisided Platforms (MSPs). MSPs are technologies, products, or services that enable direct interactions between 2 or more customer or participant groups—and include some of the most successful companies in recent decades.
In crafting an MSP Strategy, there 4 critical strategic decisions to evaluate:
1. Number of Sides
2. Platform Design
3. Pricing Structure
4. Governance
This framework discusses these strategic decision areas in depth. Additional topics discussed include Cross-side Network Effects, Chicken-and-the-Egg Problem, Economies of Scale, Switching Costs, among other topics.
This deck also includes slide templates for you to utilize in your own business presentations.
This presentation provides a comprehensive exploration of the critical strategic decisions necessary for developing a successful Multisided Platform (MSP). The framework delves into the nuances of determining the number of sides, designing the platform, structuring pricing, and establishing governance. Each section is meticulously detailed to ensure that you can make informed, strategic choices that align with your business objectives.
The PPT also addresses common challenges MSPs face, such as the chicken-and-egg problem, cross-side network effects, and economies of scale. By understanding these barriers and leveraging the included slide templates, you will be well-equipped to navigate the complexities of building and managing a robust MSP. This resource is indispensable for executives seeking to transition to or optimize a platform business model.
This PPT slide analyzes pricing structures of multisided platforms (MSPs), categorizing them into loss-leader and profit-making sides. Loss-leader platforms, such as advertising-supported media and payment systems, often provide services at low or no cost to users to build a large user base. In contrast, the profit-making side includes advertisers, sellers, and developers who generate revenue by accessing this user base. The complexity of MSP pricing strategies reveals that users may not always fall on the loss-leader side, highlighting the balance between user acquisition and revenue generation. Understanding these dynamics informs strategic decisions regarding partnerships and investments in MSPs.
This PPT slide outlines the transformation from traditional products to platform-based models, structured into 3 sections: Conditions, Catalysts, and Challenges. The "Conditions" section identifies environments for transformation, highlighting industries like home appliances, automotive manufacturing, and furniture, indicating varying susceptibility to market dynamics. The "Catalysts" segment discusses the timing of changes, identifying driving forces that precipitate the shift toward platform models. The "Challenges" section addresses obstacles organizations face in adapting to new market realities, which can hinder effective responses to identified catalysts. This framework helps companies assess their readiness for transformation by understanding the interplay between market conditions, timing, and challenges.
This PPT slide analyzes Multisided Platforms (MSPs) compared to Product Platforms and Resellers. MSPs have 2 essential traits: each participant group, or "side," must be meaningful customers, and the MSP facilitates direct interactions among these sides. The Product Platform shows a transaction flow where Side A sells inputs to Side B,, but lacks direct consumer engagement, violating the first MSP characteristic. In contrast, MSPs allow direct interactions between sides, ensuring operational integrity. The Reseller model also involves Side A and Side B, but fails to facilitate direct interactions, not meeting the second MSP characteristic. MSPs, as intermediaries, wield significant influence in their industries, highlighting their distinct operational model compared to others.
Multisided Platforms (MSPs) are technologies, products, or services enabling direct engagement among 2 or more customer segments. Notable examples include eBay, Amazon, Facebook, Twitter, and PlayStation. Key strategic decisions for effective MSP strategy include:
1. Number of Sides: Determining the distinct participant groups interacting on the platform to maximize value creation.
2. Platform Design: Structuring the platform to meet the needs of all sides effectively.
3. Pricing Structure: Monetizing services across different user groups to enhance engagement and retention.
4. Governance: Establishing rules and policies to ensure fair interactions within the platform ecosystem.
Strategic decisions in these areas are vital for building and managing a successful MSP.
This PPT slide outlines 5 key trade-offs and challenges in managing a multisided platform (MSP). The first challenge is "Increased Complexity," where more sides lead to operational inefficiencies and coordination difficulties. "Economic Dependency" highlights that the platform's viability relies on the performance of all sides; failure of one can jeopardize the entire model. The "Conflict of Interests" arises with multiple stakeholders, complicating governance as their interests may clash. The "Lowest Common Denominator Issue" indicates that innovation can be stifled by the need to satisfy all sides, hindering adaptability. Lastly, the "Chicken-and-the-Egg Problem" becomes more complex with additional sides, as attracting one side often depends on the presence of others.
This PPT slide addresses strategic decisions in Multisided Platform (MSP) design, focusing on core features. The critical question is, "What core features should we include?" Design decisions often involve a cost-benefit analysis, evaluating whether the value generated for multiple sides justifies the costs. However, MSP design can be complex, with features potentially conflicting with the interests of different stakeholders. Some design choices may require sacrificing short-term revenue to enhance overall utility for affected participants. This balance between immediate financial impacts and long-term value creation is essential for successful platform design. Poor design decisions can jeopardize the platform's success.
This PPT slide outlines 3 critical trade-offs in governance for multisided platforms (MSPs). The first trade-off, "Quantity vs. Quality," highlights the balance between governance rules and participant engagement; looser rules attract more participants, while stricter rules ensure higher quality, but may limit participation. Effective cross-side network effects depend on both quantity and quality.
The second point, "Lemons Market Failure" (LMF), emphasizes the need for quality assurance and transparency to prevent low-quality suppliers from driving out high-quality ones, which can alienate customers.
The final point, "Too Much Competition," warns that excessive participation on one side can saturate the market, discouraging innovation and capital investment. Poor governance can lead to market failures, underscoring the necessity for effective governance strategies in MSP operations.
Source: Best Practices in Pricing Strategy, Business Model, Platform Strategy PowerPoint Slides: Multisided Platform (MSP) Strategy PowerPoint (PPTX) Presentation Slide Deck, PPT Lab
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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