The benefits of a platform-focused model for 'matured' brands
As discussed in my previous article , platform-focused growth is becoming increasingly important for mature brands looking to stay competitive in today's digital economy.
In this article, I want to dive deeper into the benefits of a platform-focused model for matured brands and provide some examples of brands that have successfully made the transition.
One of the key benefits of a platform-focused model is the ability to scale more efficiently and quickly than in a traditional pipeline-focused model. Platforms can leverage the network effect to attract and retain more users and providers, creating a virtuous cycle of growth. This scalability also provides greater flexibility for brands to adapt to changing market conditions and customer needs.
Example: Uber is a classic example of a platform-focused model that has disrupted the traditional taxi industry. By leveraging the network effect, Uber has been able to expand rapidly into new cities and countries and provide a more convenient and affordable transportation option for consumers.
Platforms can provide a better customer experience by offering a more diverse range of products and services, personalized recommendations, and streamlined transactions. This can lead to increased customer loyalty and higher customer lifetime value.
Example: Spotify is a music streaming platform that has become the go-to destination for music lovers. By offering a personalized music experience that includes curated playlists, recommendations, and social features, Spotify has created a loyal user base that is willing to pay for its premium subscription service.
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Platforms can create new revenue streams by charging fees or commissions on transactions, offering premium services, or monetizing user data. This can provide additional sources of revenue for mature brands that may have limited growth opportunities in their core business.
Example: PayPa l is a platform that enables online payments and money transfers. By charging a small fee on each transaction, PayPal has created a new revenue stream that has helped the company grow beyond its original core business of providing online payment services.
Platforms can create a competitive advantage by offering unique features or services that are difficult for competitors to replicate. This can help mature brands differentiate themselves in crowded markets and maintain their market share.
Example: Apple is a platform-focused brand that has created a unique ecosystem of hardware, software, and services that is difficult for competitors to replicate. By creating a seamless user experience across its products and services, Apple has created a loyal customer base that is willing to pay a premium for its products.
In the last 10 years, we can clearly see more winners as they keep adopting platform-focused growth which can provide significant benefits for not only mature brands but any brand looking to stay competitive in today's digital economy.
By leveraging the #networkeffect , improving the #customerexperience , creating #newrevenuestreams , and creating a #competitiveadvantage , mature brands can adapt to changing market conditions and create #sustainablegrowth for the future.
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