Key Trade-offs in Multisided Platform Strategy PPT

This PPT slide, part of the 34-slide Multisided Platform (MSP) Strategy PowerPoint presentation, outlines 5 key trade-offs and challenges associated with the decision on the number of sides in a multisided platform (MSP). Each point highlights a critical aspect that decision-makers must consider.

The first trade-off is "Increased Complexity." As the number of sides increases, the complexity of managing interactions and relationships also grows. This complexity can lead to operational inefficiencies and difficulties in coordination.

Next is "Economic Dependency." The slide emphasizes that the business model's viability hinges on the successful functioning of all sides. If one side fails or underperforms, it can jeopardize the entire platform's economic health, making it crucial to ensure all sides are interdependent yet capable of sustaining themselves.

The third point addresses "Conflict of Interests." With multiple sides involved, conflicts can arise, complicating governance. The slide suggests that these conflicts may become more pronounced and harder to manage as the number of stakeholders increases.

The "Lowest Common Denominator Issue" is another challenge. It indicates that introducing innovative features may be stifled by the need to cater to all sides. This can hinder the platform's ability to evolve and adapt to market changes.

Lastly, the "Chicken-and-the-Egg Problem" is reiterated as a significant concern. The slide notes that with more sides, this problem becomes even more complex, as attracting one side often depends on the presence of others.

Overall, the slide serves as a reminder that while increasing the number of sides can offer benefits, it also introduces significant challenges that require careful consideration.

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Platform Strategy Business Model Design Governance