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Over the last decade or so, we’re seeing the emergence of a new form of scale. Today’s massively scaling startups – which rapidly grow to millions of users and billions in valuation – do not sell a product or service. Instead, they build a platform on which others can create and exchange value.
The many manifestations of the platform business model – social media, the peer economy, cryptocurrencies, APIs and developer ecosystems, the Internet of things, crowdsourcing models, and many others – are becoming increasingly relevant.
Yet, most new platform ideas fail because the business design and growth strategies involved in building platforms are not well understood.
Platform Scale lays out a structured approach to designing and growing a platform business model and addresses the key factors leading to the success and failure of these businesses.
Six core concepts for successful platform business model design
1. Re-imagine your business for platfor