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Details
Table of Contents
Intro
Preface
Contents
About the Author
1 Introduction
What Are Business Models?
Models
Business Models
Platform Business Models
Single- and Multi-sided Platforms
Network Effects
Platforms Make Markets Efficient
Platform Roles
Platforms as Networks
Complementarity, Compatibility, and Standards
Consumption Externalities
Switching Costs and Lock-In
Significant Economies of Scale
Platforms as Ecosystems
Key Platform Decisions
2 Network Effects
Externalities, Network Externalities, and Network Effects
Defining Network Effects
Same-Side and Cross-Side Network Effects
Positive and Negative Network Effects
Properties of Network Effects
Strength of Network Effects
Direction of Network Effects
Nonlinearity of Network Effects
Leveraging Networks for Growth
Coring
Tipping
Products, Services, and Platforms
3 Value Creation in Platforms
Value Architecture
Discovery
Matching
Transaction
Evaluation
DMTE as a Cycle
DMTE Diagram
Platform Utilities
4 Network Mobilization
Strategic Dimensions: Resources and Users
User Dimension
Resource Dimension
Solving the Penguin Problem
Leverage Existing Resources to Port Users
Leverage Ecosystem Resources to Port Users
Develop New Resources to Port Users
Leverage Existing Resources to Attract Users via Marquees
Leverage Ecosystem Resources to Attract Users via Marquees
Develop New Resources to Attract Users via Marquees
Leverage Existing Resources to Attract New Users
Leverage Ecosystem Resources to Attract New Users
Develop New Resources to Attract New Users
User Attraction Strategies
Resource Leverage Strategies
Network Mobilization Strategies
5 Pricing and Subsidies
Subsidy and Money Sides
Relative Strength of Cross-Side Network Effects
Relative Price Sensitivity
Relative Value Attached to Quality of Products and Services
Marginal Costs of User Addition
Relative Differentiation Amongst Users
Relative Bargaining Power of Complementors
Pricing Models
Subscription Pricing Models
On-Demand Pricing Models
Razor-Blade and Reverse Razor-Blade Pricing Models
Freemium Pricing Models
Auction Pricing Models
Free Pricing Models
Pricing and Platform Scale
6 Platform Architecture
Ecosystem Value
Open and Closed Platforms
Trade-Offs in Opening Platforms
Shared and Proprietary Platforms
Proprietary Platform
Shared Platform
Joint Venture Platforms
Licencing Platforms
Platform Design in WTA Markets
Matrix of Platform Architecture
Platform Architecture and Growth
Interoperability
Licencing More Partners for Configuration and Customization
Opening the Core
7 Winner-Takes-All Dynamics
What Are WTA Markets?
Strong and Positive Network Effects
High Multi-homing Costs
User Preference for Special Features
Economics of WTA Markets
Preface
Contents
About the Author
1 Introduction
What Are Business Models?
Models
Business Models
Platform Business Models
Single- and Multi-sided Platforms
Network Effects
Platforms Make Markets Efficient
Platform Roles
Platforms as Networks
Complementarity, Compatibility, and Standards
Consumption Externalities
Switching Costs and Lock-In
Significant Economies of Scale
Platforms as Ecosystems
Key Platform Decisions
2 Network Effects
Externalities, Network Externalities, and Network Effects
Defining Network Effects
Same-Side and Cross-Side Network Effects
Positive and Negative Network Effects
Properties of Network Effects
Strength of Network Effects
Direction of Network Effects
Nonlinearity of Network Effects
Leveraging Networks for Growth
Coring
Tipping
Products, Services, and Platforms
3 Value Creation in Platforms
Value Architecture
Discovery
Matching
Transaction
Evaluation
DMTE as a Cycle
DMTE Diagram
Platform Utilities
4 Network Mobilization
Strategic Dimensions: Resources and Users
User Dimension
Resource Dimension
Solving the Penguin Problem
Leverage Existing Resources to Port Users
Leverage Ecosystem Resources to Port Users
Develop New Resources to Port Users
Leverage Existing Resources to Attract Users via Marquees
Leverage Ecosystem Resources to Attract Users via Marquees
Develop New Resources to Attract Users via Marquees
Leverage Existing Resources to Attract New Users
Leverage Ecosystem Resources to Attract New Users
Develop New Resources to Attract New Users
User Attraction Strategies
Resource Leverage Strategies
Network Mobilization Strategies
5 Pricing and Subsidies
Subsidy and Money Sides
Relative Strength of Cross-Side Network Effects
Relative Price Sensitivity
Relative Value Attached to Quality of Products and Services
Marginal Costs of User Addition
Relative Differentiation Amongst Users
Relative Bargaining Power of Complementors
Pricing Models
Subscription Pricing Models
On-Demand Pricing Models
Razor-Blade and Reverse Razor-Blade Pricing Models
Freemium Pricing Models
Auction Pricing Models
Free Pricing Models
Pricing and Platform Scale
6 Platform Architecture
Ecosystem Value
Open and Closed Platforms
Trade-Offs in Opening Platforms
Shared and Proprietary Platforms
Proprietary Platform
Shared Platform
Joint Venture Platforms
Licencing Platforms
Platform Design in WTA Markets
Matrix of Platform Architecture
Platform Architecture and Growth
Interoperability
Licencing More Partners for Configuration and Customization
Opening the Core
7 Winner-Takes-All Dynamics
What Are WTA Markets?
Strong and Positive Network Effects
High Multi-homing Costs
User Preference for Special Features
Economics of WTA Markets