Why Platform Business Rules the World ❓

Why Platform Business Rules the World ❓

In the early days of the Internet boom. Merchants are worried that online commerce will make the middleman disappear. But the present proved the exact opposite. In the online commerce world, there are many intermediaries, but it is "high-tech middlemen" to solve important problems that traditional intermediaries can't do. It can also connect human needs together in ways that have never been seen before. The business that these intermediaries create is called “Platform business” that is a new business model. usually in the form of an application that is easy to load, convenient to use on mobile If we want to start a platform business The first step must start with planning and writing a business plan, which contains 5 important things that are different from a typical business plan or a traditional business plan as follows:

1. The value of the platform business (Value Proposition) focuses on facilitating and solving Pain Point.

The value of the platform business is primarily facilitating and solving pain points, which are not possible in traditional businesses. due to its distinctive feature "Matching needs" between users on the platform, so the more difficult the industry to meet. or have problems with distrust It is even more desirable to create a platform business that facilitates and monitors each other. to help solve the problem of passengers who are often denied service or insecure from taxi rides alone At the same time, it helps drivers know their destination before deciding whether to transfer this passenger or Freshket, which matches buyers and sellers of food ingredients. allowing restaurants or hotels to order vegetables Fruits from fresh market vendors quickly as needed. At the same time, both of them were able to examine each other.

2. Funding for business (Financials) can be obtained from a variety of sources.

Platform business is in the category of innovative businesses that are of interest to many industries, including startups. which many years ago Thailand has established many business incubators and funds for this kind of business. In addition, the government has activities Organize a business idea contest Continuously compete for funding, such as a contest project from the Government Savings Bank. So if we are interested in doing business platform We can plan for funding from many sources. No longer limited to borrowing from banks. because if the evidence does not pass There's no chance! But platform businesses can use crowdfunding methods or find an idea pitching platform that has the opportunity to get funding from Angle or Venture Capital. Local Alike, for example, is a social business platform. that encourages villagers who own the community to be "special guides" for tourists Able to organize their own tours, Local Alike has been able to raise funds to expand its business up to 11.4 million baht from Booking.com's Sustainable Tourism Stimulation Program contest.

3. Income Model (Revenue Model) is not just selling products. but can also make money from intangible things

Think about if you want to open a bookstore. Having to contact many publishers, there must be a space in front of the shop for selling and keeping part of the stock. If the space is full, it must be sold out first. and then post a new book, but if you think of Ookbee, which is a platform business that can be sold without limiting the area In addition to getting books from a variety of publishers, it can be seen that Ookbee has changed the revenue model that we have been familiar with for a long time, namely setting the retail price from adding profit from the cost called the Mark-up Model to the revenue model. Fully readable subscription model (Depending on the customer pays monthly or annual contracts) because in fact If we are an Ookbee member, we don't buy individual books. read at home But we have access to online reading. This platform business plan Must consider a new form of income that is not just selling products. But you have to look deeply into selling digital products, services or rights as well.

4. Customer segmentation (Customer Segment) focuses on the harmonization of benefits between user groups.

The platform business utilizes multisided segmentation and manages the balanced benefits of the platform's clients from multiple segments. This is a new type of market segmentation that traditional businesses are difficult to achieve. The platform's customers are multi-groups and their roles are interrelated in one way or another. For example, there are two groups of Netflix customers: movie licensing owners and viewers. GrabFood's three customer groups are restaurants, motorcycles. and food buyers. Facebook will have (at least) 4 groups: Facebook players, developers, advertisers and other partners. where the platform acts as an intermediary If the platform can attract new groups that come in to be linked and can be used together Our business will continue to grow.

5. The supply chain (Value Chain) is not linear like a traditional business.

Platform businesses don't have a horizontal, linear supply chain like Michael E. Porter's theory, or a “pipeline” as written in the book Platform Revolution, but rather a “Network effects” model. The platform business is focused on networking. Remember that the platform business is built to be an intermediary that connects both sides of the network, Demand and Supply. If Demand is high (let's come!), you don't have to worry about being unable to deliver in time. because the supply can be expanded quickly and without limitation as well This is different from a water pipe business. Therefore, this business is like a platform that facilitates and connects all groups of people. By joining the vehicle to the same destination

👉🏻3 common points of what is a platform

1. Market Sides is the middle market. that brings customers and creators on the platform to share what they have in common

2. Must add value until it becomes a Network Effect

3. The problem of the 'chicken and egg, which comes first' problem must be solved, for example, compared to Grab, the driver and the rider. What should come first, or like Airbnb, people rent out rooms to guests? what should come first

👉🏻 Platform Type

1. Transaction Platform is an intermediary for exchanging something. And it will get good results from Network Effect such as Snapchat, Instagram, Twitter, Pinterest, LinkedIn, Airbnb, Uber, Alibaba, Google Play, App Store, WeChat, Amazon Marketplace, etc.

2. Innovation Platform, a platform that acts like Technological Foundation and people come to develop innovations in their own platforms such as Facebook for developers, Microsoft Azure, Amazon Web Services, etc.

👉🏻Which platform is right for your business?

If your business has products that can create value from third parties to create innovations, try Innovation Platform Strategy. For example, Apple iOS and Google Android already have good products. The more if open to people to develop how much. The more our products develop But most importantly, your product must be good first.

If your business is service-oriented And to create more value from a larger market, do a Transaction Platform Strategy such as Airbnb and Grab. Of course, your service needs to be good as well. including quality control, user experience and safety.

👉🏻 Future of Platform

1. Hybrid companies between Transaction and Innovation will increase

2. Come up with something that will help increase the potential and quality of platforms such as AI, Blockchain, IoT, etc.

3. If any market has a platform that already owns the market There will be only that and easy monopoly

4. Open platforms will be more censored, for example Facebook's Libra is more censored with stricter regulators.

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Details of online marketing services

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Examples of various brands that we take care of online marketing

>>https://www.chatstickmarket.com/portfolio

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