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Primary Activities and Platform Companies

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The platform business model is not aimed at the physical creation, sales, supply and service of a company’s own product or service. This results in the value activities of inbound logistics, operations and outbound logistics disappearing from the value chain and the direct control of the platform company.

The owner of the platform creates value as an independent intermediary, by matching and connecting two (or more) mutually dependent parties with one another and facilitating the direct interaction between these parties (Eisenmann et al., 2006; Osterwalder and Pigneur, 2010). The aim of marketing here is no longer to bring about a transaction for a company’s product and/or service but to realise a value exchange between supply and demand.

The most important capital of a platform company for providing this value proposition consists of the following:

• an infrastructure for direct interaction (the platform);

• the presence of network effects that arise when two (or more) sides of the market have an interdependence, supply and demand, resulting in the growth of the network;

• the availability of data arising from the interaction via the platform, thereby creating matching functionalities and the relevance of the platform.

The most important value activities can thus be described as platform management, platform promotion and service provision to the network (Osterwalder and Pigneur, 2010).

End Of Competition, The: The Impact Of The Network Economy

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