This book introduces platform firms as unique business models. Leveraging on the early literature on network economics and strategy frameworks, this book explores how platform business firms evolve in the modern business world. Taking a strategic perspective, this book engages the reader with core concepts, case studies, and frameworks for analyzing platform business firms. This book differentiates platform business firms from traditional pipeline firms; explores engagement with different actors, value creation, and operations of platforms; elucidates resources and capabilities of platform firms that provide them sustained competitive advantage; analyzes performance levers in operating platform business models, including complementarities with other business models; and discusses the sustainability of platform business models, in the face of regulatory and societal challenges, among others.

The book is designed as a primer for entrepreneurs setting up and operating platform business firms, senior managers in large corporations repurposing their resources to initiate network dynamics in their businesses, early career managers, and professionals engaging with myriad platform firms for their professional and personal needs. This book intends to provide a decision-maker with a portfolio of decisions to make to create, operate, sustain, and generate value out of a platform business firm. It is also useful for policy professionals to appreciate the economics and policy implications of regulating and governing platforms in a post-digital world.

Autorentext

R Srinivasan is Professor of Strategy at the Indian Institute of Management Bangalore. He teaches courses on strategy and platform business models for MBA students at IIMB and the Friedrich Alexander University of Erlangen-Nuremberg, Germany. He has written a lot of cases and articles on platform businesses in India and Germany. He also engages with a variety of startups and businesses that operate platform business models as an advisor and consultant. He earned his doctoral degree from the Indian Institute of Management Ahmedabad.

Inhalt
1. Introduction to core conceptsa. What are business models?b. How are platforms different from pipelines?c. Platforms as networks different sides to the platformi. Compatibility complementarity and standardsii. Consumption externalitiesiii. Switching costs and lock-iniv. Significant economies of scaled. Simple vs multi-sided platformse. Core conceptsi. Network effectsii. Value architecturesiii. Network mobilizationiv. Pricing and subsidiesv. Winner-takes-all dynamicsvi. Platform envelopment2. Network effectsa. What are network effectsb. Direct (same-side) and indirect (cross-side network effects)c. Positive and negative network effectsd. Leveraging network effects for growthe. Products/ services and platforms3. Value creation DMTE (cost reduction, choice, community)a. Platform value architecture (cost, choice, community)b. Discoveryc. Matchingd. Transactione. Evaluationf. The DMTE cycle4. Penguin problems and network mobilization issuesa. Introduction to penguin problemsb. Challenges in network mobilizationc. Strategies to resolve penguin problems (10 of them)5. Pricing and subsidiesa. Designing the money and subsidy sidesb. Criteria for subsidiesc. Pricing models (5 of them)d. Pricing and its impact on WTJ, WTP, and WTS6. Platform architecture open/closed and shared/ proprietary platformsa. Open and closed platformsb. Shared and proprietary platformsc. A matrix of open-closed and shared-proprietary platformsd. The challenges of developing the ecosystem of complementorse. Standards and platform growth7. Winner-takes-all dynamicsa. What are WTA markets?b. Positive and strong network effectsc. Multi-homing costsd. No special preferencese. Implications of WTA markets on complementorsf. Regulatory issues with WTA markets8. Platform envelopmenta. What is the threat of envelopment?b. Evaluating the threat when it is imminentc. Envelopment mitigation strategiesi. Racingii. IP protectioniii. Caging of customersd. Envelopment and diversification9. Complementary business modelsa. Overview of differences across business modelsb. Complementarity across business models, say SaaS and platformsc. Sources of synergies and costsd. Impact of these synergies in platform development and scale/ scope10. Contemporary issues in platformsa. Platforms in contestable marketsb. Multi-point competitionc. Platform governanced. Social impact of platformse. Managing international regulationf. Costs of compliance (issues around privacy and monetization)g. Future of platforms new technologies (AI/ ML, blockchain)