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113-BNA G2 Platform Model, G2 (111212006黃聖勛, 110251028傅翊安, 110104034王佳葳,…
113-BNA G2 Platform Model
Platform Business Models
define
Provide a platform for suppliers and consumers to interact and transact, focusing on creating value and profiting from transactions on the platform.
Types of platform business models
Soical media
(e.g. Facebook、LinkedIn、Twitter)
Search platform
(e.g. Google)
Communication
(e.g. Whatsapp, Skype, WeChat)
Matchmaking platform
(e.g. TaskRabbit、eHarmony))
Content and review platform
(e.g. YouTub)
Booking platform
(e.g. Booking.com、Expedia)
Retail platform
(e.g. Amazon、Etsy、eBay、Alibaba)
Payment platform
(e.g. PayPal, Visa)
Development platforms
Sharing economy platforms
Sharing of capacity-constrained assets and resources .
Peer-to peer sharing (e.g. Airbob and Uber)
(e.g. cars and bicycles)
Sharing of platform owner provided assets (e.g, ZipCar)
Sharing of capacity unconstrained resources
(e.g. file, music, andinformation sharing mostly peer-to-peer)
Crowdsourcing&crowdfunding platforms
Platform features
2.Central location
1.No asset ownership
Platform Network Effects
Primary Network Effects
The value of a service to users increases as the number of users increases.
e.g. facebook
Examples of lack of primary network effects
e.g. Google
Google's primary function is to provide search results, not the number of users.
Secondary Network Effects
The growth of different user groups on the platform reinforces each other.
e.g. Uber
The more passengers there are, the higher the driver’s income, and the more drivers are willing to join.
Multihoming and price competition
Users and service providers use multiple platforms simultaneously.
e.g. The driver uses both Uber and Lyft to take rides, and passengers choose the platform to call a ride after comparing prices.
Impact: Platform profit margins are compressed because competition between platforms becomes more intense.
platform ecosystem
Platform composition
platform itself
A rich ecosystem can increase user stickiness and attract a large number of users.
Service providers (e.g. drivers, landlords)
Customer (e.g. passenger, tenant)
Supplementary services ( tour guides, local transportation, translation)
The future of platform business models
1.The integration of traditional enterprises and platforms
self-operated and platform services coexist, and both traditional enterprises and platform companies may adopt this model.
but response strategies of traditional enterprises?
By integrating the platform model into the existing business model.
Combine your own advantages
e.g. Marriott Hotels Group launched the platform "One Fine Stay" to provide high-end homestay booking services.
2.The boundaries between traditional enterprises and platforms are blurred.
Challenges of platform business models
High valuation: Platform companies are overvalued.
Ignoring the existence of competition
Transformation of traditional enterprises
Network effects are over-amplified
Customers worry about being locked in
Customers worry that they will be locked in using a single platform and will not be able to enjoy the services and benefits of other platforms.
High cost of switching platforms
Platform binding is an important consideration for customers when choosing a platform.
Platform
A business model that connect producers & consumers to facilitate the exchange value
Value exchange
Information
Goods & Survice
Currency Exchange
Cryptocurrencies
Non-traditional forms
(Intangible forms of value )
Attention
Reputation
Traditional currenices
The platform facilitate the exchange of good & service
Internally
(Youtube)
Exterallly
(Uber rides)
Decide whether and how to engage in any futher exchange
Core Interaction
Priniciples of successful design
Facilitate
Ensuring smooth process and transparent
Matches
Most relevant goods or services with comsumers
Pull
Feedback loop
Multi-user feedback loop
Social media platform might display content that is trending among a user's friends, encouraging social interaction.
Single-user feedback loop
Streaming service suggesting shows or movies that align with a user's viewing history.
Startup business model and pricing
business model
nine business model of nearly every billion-dollar company
Marketplace
Bilateral platform, connecting buyers and sellers
Airbnb, OpenSea
Hard-tech
developing and selling hardware products
Cruise self-driving cars
BIO
developing and selling biotechnology products
Enterprise
Selling to enterprise customers, the sales cycle is longer
Advertising
Make money through advertising
Google, Facebook, Twitch
E-commerce
selling products online
Usage-based
Charge based on usage
Transactional
Facilitate transactions and take a commission
Stripe, Coinbase
SaaS
Cloud software subscription services
Slack, Zoom
Business model lessons from the YC top100 companies
SaaS recurring revenue is stable
Trading companies participate in capital flows and make profits easily
ex: Stripe、Coinbase
The platform model is the easiest for the winner to take all and has a strong network effect.
ex: Airbnb、Instacart
SaaS (31%), transactional (22%), platform (14%) accounted for 67%
Advertising business needs to become popular
ex: Google、Facebook
Business models to avoid
Hardware
requires a lot of capital, low profit, difficult to scale
Dependence on other platforms
high platform risk
Affiliate marketing
too far away from the transaction to make a profit
Service/Consulting
Unstable income
low profits
difficult to scale
pricing strategy
Pricing Practical Tips
Communicate with users to understand product value
Reference success story: Netflix gradually increases prices
Provide different solutions
ex: early user discounts, locking customer information
Gradually increase prices to test user acceptance
Segment case analysis
From free to paid, eventually acquired for $3 billion
Be brave enough to raise prices and create higher value
5 Key pricing insight
Avoid low-price competition
low price is not an advantage
Pricing isn't permanent
they can be adjusted according to market reaction
Value Pricing
Pricing based on product value, not cost
You should charge
Find out what users are willing to pay
Keep it simple
avoid complex pricing plans
G2
111212006黃聖勛
110251028傅翊安
110104034王佳葳
112251033陳羨
Participants
Consumers
Producers
Value uints
Listings on Airbnb
Product on eBay
Filters
Algorithms to recommed relevant value units
ex: Search engine result pages
"Chicken or Egg problem"
Data-Driven Development
Modular Design
Success Cases of Platform Evolution
Transition from an integrated architecture to a modular one.
Add new features on top of the core interaction
Facebook introducing its dating feature. Modular design involves breaking the system into independent modules while ensuring interoperability between them.
Establishing clear data collection strategies and using data analysis
Optimize matching and recommendations.
definition
Base on
Monetary payment
A key to attracting & retaning user on a platform
Same user can play different roles
Attracting users and maintaining interests
e.g