author : feng zhu and qi-hong liu professor : soe-tsyr (daphne) yuan presenter : po-wei chiang
DESCRIPTION
Platform business modelTRANSCRIPT
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Author : Feng Zhu and Qi-Hong Liu
Professor : Soe-Tsyr (Daphne) Yuan
Presenter : Po-Wei Chiang
CompetitionWhen PlatformsAttack
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Platform business model
Platforms attack
Contradiction & Impact
Strike back
Discussion
Outline
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Platform business model
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a) acquiring a critical mass of customers in each group
b) matching them throughc) connecting them so that they can
exchange d) enabling a transaction so that purchase
can be made
Platform business model
Reference: http://www.launchworksventures.com/2014/04/21/what-is-a-platform-business/
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What does the platform of Amazon look like?
Product suppliers
Third-party sellers
Amazon Customers
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Platforms attack
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What happens if the platform decides to offer competing products itself?
Would the platform owners essentially run the platform as a lab, and then cherry-pick the best products for themselves?
Hypothetical question of platforms attack
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Walmart – Great value
7-11 – Seven select
Twitter – Periscope
Apple – Flashlight apps
Are there any cases happened before?
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At Feb 2014, Amazon starts to sell a total of 5,000 products they didn’t sell ten months ago.
Amazon was more likely to offer products directly because…a) strong demand relative to other items in the same category
b) there were numerous third-party sellers
c) shipping costs were low
d) prices were relatively high.
Attacks from Amazon
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Attacks from Amazon(cont’d)
The Battle for Visibility
The products directly sold by Amazon often became the default option.
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Contradiction & Impact
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In theory…Company move into a product’s space might provide better customer service than third-party seller.
Contradiction
After analyzing…Most customers seemed happy with the products they had bought prior to Amazon’s entry.
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The sellers’ willingness to introduce innovative products on the platform might be eroded.
The platform effect of Amazon will be weaken, if they discourage too many small sellers.
Impacts
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Strike back
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Sign exclusive deals with suppliers
Manufacture some products yourself
Focus on a large selection of niche products
What can third-party seller do?
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What more can third-party seller do?
How to decide the balance between private and third-party products?
Discussion