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08 Jun 2016

Edwin Sim looks at how platforms are transforming business strategy.

Apple, Uber and Airbnb are overrunning incumbent product-push pipeline businesses by exploiting platforms and leveraging new rules of strategy.

In a recent Harvard Business Review article, “Pipelines, Platforms and the rules of strategy”, the authors said in today’s digital internet environment, scale trumps differentiation.

“Platform businesses bring together producers and consumers in high-value exchanges.”

 

Platforms – major assets

In contrast to traditional product pipeline sales organizations, platforms chief assets are information and interactions, the sources of the value they create and their competitive advantage.