Hagiu, A. & Zhou, B. Transforming Products into Platforms: Unearthing New Avenues for Business Innovation. NIM Marketing Intelligence Review, 2024, Sciendo, vol. 16 no. 2, pp. 10-17. https://doi.org/10.2478/nimmir-2024-0011
Transforming Products into Platforms: Unearthing New Avenues for Business Innovation
Abstract:
It is impossible for brands to ignore digital platform opportunities. Network effects are one of the strongest sources of power and defensibility ever invented and underlie some of the most valuable businesses in the world. Managers and entrepreneurs can leverage the power of platforms by adding some platform elements to their existing products or services, by distributing their brands via existing platforms or by developing their own new platforms. By using one’s own brands as platforms requires creativity but can help businesses unlock new value and build resilient ecosystems around their products. There are three key methods. The first is to invite third-party sellers to enhance existing products. Examples include selling advertising space around products or creating app stores to extend offers. The second is to connect one’s customers by enabling interactions among users to add value. Third, brands might reach out to customers’ customers by enhancing the end-user experience in a way that benefits both themselves and their direct customers. If thoughtfully implemented, any platform strategy will create self-reinforcing feedback loops sparking growth and keeping competitors at bay.
Other articles of the MIR issue “Platform Business”
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