What is platform strategy?
The word strategy means an action plan to achieve an overall objective or goal, and this meaning also applies to the platform strategy. A platform strategy is an end-to-end plan to reach the final aim of the platform. It entails what you should do and how you should do it to achieve the ultimate goal of what your platform is meant for. It should provide an action plan from entry to sustainability at the peak. Hence, the platform strategy should answer the following questions:
- How would you enter the market?
- How would you grow?
- What should be done to sustain your goal?
For the platform strategy or the platform business model, these three questions should be answered in conjunction with the characteristics of the platform that we saw in Chapter 1, Fundamentals of Platform Business Models, which are as follows:
- It is multidimensional.
- It enables an easy plug-and-play mechanism.
- It creates strong network effects.
