The platform-based business model is thriving right now. Seven of the twelve largest companies worldwide follow this model. In spite of this, few of the traditional giant corporations have adopted this model. The likes of Alibaba, Google, Amazon, Microsoft, Facebook, Tencent and Apple all rule over huge pieces of the pie. They also have tremendous reach especially through social networks emanating from Instagram, We Chat, WhatsApp or YouTube. This gets leveraged by companies for their digital marketing activities. A digital platform is one with an open infrastructure. They are matchmakers connecting various resource providers towards collaborative innovations. Their ecosystems sprawl across international boundaries. Due to the vast digital activities, they end up performing vast quantities of data warehousing operations, from which business insights may be gleaned. Few incumbent market leaders have adopted a proactive platform strategy. It has instead been attritional to support their traditional businesses.

Source:https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/five-fifty-platform-plays?cid=other-soc-twi-mip-mck-oth-1805&kui=WRrEnLPQHtax6yFuuFmpKw

Uploaded Date:10 July 2018