Who are your most important customers

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Reference no: EM133946423

Chapter: Build Platforms, Not Just Products

This chapter examines the rise of platform business models, where businesses facilitate interactions between distinct customer types. It covers types of platforms (exchanges, transaction systems, ad-supported media, standards), network effects, the platform spectrum, and competitive benefits. Digital technologies enable frictionless growth.

Tools: Platform Business Model Map and Competitive Value Train

Platform Business Model Map: The Model Map to answer these important questions: Whom do you need to bring on board to make your platform work? How will you monetize? Who are your most important customers? (These are likely both the primary payer and the linchpin.) Is your business model in balance? Does each party receive enough value to attract its participation? Does each party contribute enough value to justify its inclusion?

Chart Setup: Fill out a chart with seven questions (distinct customer types, value received/provided, value to/from platform, attraction, profiles like linchpin, payer, primary payer, sweetener). Get online assignment help – 100% Original & AI-Free Content.

Map Drawing: 5 steps (names, shapes, attraction, value received, value provided).

Shapes and Arrows: Circle for platform, diamonds for payers, squares for sweeteners, spikes for attraction, arrows for value exchange (bold for monetary, parentheses for platform value).

Competitive Value Train: It helps analyze competition and leverage between a firm and its business partners, direct rivals, and asymmetric competitors in a supply chain, and their potential substitutes, by mapping how a particular product or service reaches a particular group of customers
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Step 1: Start with a horizontal train jumping over its current partners or firms leading to a final consumer on the right (originator, producer, distributor).

Step 2: Add competitors (symmetric below each car, asymmetric above).

Two Rules of Power: Principle 1: Power to the unique value creator. Principle 2: Power to the ends.
Uses: Clarify key dynamics, predict moves, analyze disintermediation/shifts.

Mini Case: RideShare Co. - Expanding a Ride-Hailing Platform
RideShare Co. is a ride-hailing platform connecting drivers and riders, but faces competition from taxis and new entrants. They want to analyze their platform model and competitive position to grow.
Solution Using Tools:
Platform Business Model Map:

Chart Setup: Distinct types - Riders (payers), Drivers (sweeteners). Value received - Riders get rides (monetary to drivers); Drivers get fares (monetary from riders). Attraction - Riders attract drivers (2 spikes); Drivers attract riders (2 spikes). Profiles - Riders as primary payer; Drivers as sweetener

Map Drawing: Platform center (circle). Riders right (diamond). Drivers left (square). Spikes and arrows show balanced exchange.

Analysis: Model is balanced; add advertisers for promotions to boost indirect effects.

Competitive Value Train
Step 1: Train - Originator (app developers), Producer (RideShare), Distributor (drivers to riders).

Step 2: Symmetric competitors below (other ride-hailers); Asymmetric above (taxis, public transit).
Analysis: Power at ends (drivers/riders); predict disintermediation by taxis; shift to unique features like eco-rides.

Reference no: EM133946423

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