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.
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Source: Best Practices in Pricing Strategy, Business Model, Platform Strategy PowerPoint Slides: Multisided Platform (MSP) Strategy PowerPoint (PPTX) Presentation Slide Deck, PPT Lab
This PPT slide outlines the transformation from traditional products to platform-based models, emphasizing the importance of understanding market conditions, catalysts, and challenges. It is structured into 3 main sections: Conditions, Catalysts, and Challenges, each addressing critical aspects of this transition.
The "Conditions" section focuses on the environments where this transformation occurs. It poses the question, "Where is it playing out?" and highlights examples from various industries, such as home appliances, automotive manufacturing, and furniture. The slide suggests that some sectors are more vulnerable to change than others, indicating a spectrum of susceptibility to market dynamics.
Next, the "Catalysts" segment addresses the timing of these changes. It asks, "When?" and identifies catalysts as the driving forces that precipitate the shift toward platform models. Understanding these catalysts is crucial for companies to anticipate and adapt to changes in their operational landscape.
The "Challenges" section poses the question, "Why is it difficult to respond?" This highlights the obstacles organizations face in adapting to new market realities. It suggests that these challenges can hinder a company's ability to effectively respond to the catalysts identified earlier.
Overall, the slide serves as a framework for companies to assess their readiness for transformation. It underscores the need for a nuanced understanding of the interplay between market conditions, the timing of changes, and the challenges that may arise. This insight is essential for executives looking to navigate the complexities of transitioning to a platform-based approach.
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