While a platform business model seems to be beneficial in more ways than one, it can be tricky. Many may be enthusiastic in a platform business, but for the uninitiated, it’s easy to fail. With this, to replicate the success of the big examples of this model, including Airbnb and Uber, keep on reading and learn from some of the tips that I will be sharing.
1. A Solution that Matches a Problem
To succeed in a platform business, you must be able to solve a problem. The problem must be huge enough so that you can be relevant in the industry. In the book entitled Matchmakers: The New Economics of Multisided Platforms, the authors emphasized the need to enable something that was not present before you start your business. If not, you are doomed to fail.
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2. Find your Niche
The market is large and it’s a given fact that it cannot be served in its entirety. With this, for platforms to be successful, one of the most important things that need to be done is to have a well-defined market. It should be clear about the segment that it wishes to target, which will depend on the products and the services that it will offer. In the book Platform Revolution, the authors called this the micro-market strategy, citing Tinder as one of the classic examples of a success story. It will be good if you will target a small market that already has an existing interaction.
3. Provide an Infrastructure
In one article from Harvard Business Review, three critical elements have been identified as being important in a platform business. The first is called the toolbox. To put it simply, it’s all about establishing connections while making it easy for participants to make an interaction. This is essentially all about having an infrastructure that participants can easily access so that they can be part of the platform.
4. Build a Superior User-Interface
Companies like Airbnb and Uber, two of the successful platforms to date, have succeeded because of the user experience that they are offering. They have developed apps that make it easy for the users to connect with each other while also highlighting security measures. With this, those who intend to build a platform business must also have the initiatives to create an experience that can lead to the higher level of satisfaction. They should have an app that is easy to use and will make people confident that there will be no security breaches.
The success of some of the global platform businesses can be inspiring, but for new players, this can be a challenging feat. To make things easier and to increase the likelihood of achieving favorable outcomes, keep in mind the things that have been mentioned in this post.
