Please enable JavaScript.
Coggle requires JavaScript to display documents.
L5: Collaborative Business Models (Platform Businesses (Needs following…
L5: Collaborative Business Models
Drivers of Collaboration
Human's fundamentally collaborative
Partnership Models
Reseller agreements
Wholesaler supplies goods to a reseller e.g. retail: food, groceries, drugs
Contractual partnerships
A supplier-customer relationship e.g. Apple and Foxconn
e.g. celebrities and fashion brands (Nike and Michael Jordan --> Nike Air Jordan / David Beckham and H&M)
Shared Risk Ventures
Joint Ventures: Both parties invest money and share rewards or loss --> e.g. 300 million alliance of Volvo / Uber to develop self-driving cars.
Definition of partnership
'An arrangement where parties, known as partners, agree to cooperate to advance their mutual interests.'
Goal: Partnering 'to increase the likelihood of each achieving their mission and to amplify their reach.'
Reasons to partner: Operational Efficiency
Common technical standard platforms
Lightbulb fitting
Shared routes to market
Milka, McDonald's McFlurry
Tech platforms, IoT, future
Smart Home, Personal assistant 'Alexa'
Customer Co-Creation
e.g. EVE V
First crowd-sourced tablet
Community of investors
Investors treated as shareholders and customers
Platform Businesses
Differences: Build demand-side economics of scale instead of supply-side economies of scale
e.g. Airbnb established 900.000 rooms in 4 years compared to Hilton Hotels in 93 years
e.g. BlaBlacar transports 2 million people every month which is more than Eurostar
Successfull when bringing together the two stakeholders of under-served customers and suppliers with over-capacity e.g. BlaBlaCar
Needs following characteristics
Ease of access
Interaction
Facilitation
Defined Exchange of value
Foundation of trust
Rule of engagement
Low marginal cost to serve
Freemium now: e.g. Spotify
Ebay
Craiglist
Gumtree
Etsy
Cost, differentiation
MSP (Multi-sided platforms)
free services to build up user base and then charge for access (same-side) or (cross side)
Facebook / spotfy
Scale effect often leads to 'winner takes all'
Arguments to embrace collaborative business models
Model value destruction (e.g. loss of market share / profit)
Highlight opportunity
Determine if integrated into core business or new venture
Recap
Human's fundamentally collaborative / Changing social norms, including attitudes to asset ownership cs. on-demand usage
R&D can be scaled beyond internal limitations through collaboration
Customer co-creation is emerging new growth strategy
Platform business leads to winner takes all, thus scale is critical