April 6, 2020
Platform Strategy for Business | BUx on edX

Platform Strategy for Business | BUx on edX


[MUSIC PLAYING] MARSHALL VAN ALSTYNE: In 2015,
Apple, Google, and Microsoft became the most valuable
companies in the world. These platform firms knocked off
giants of energy and banking, industries that had dominated
the upper ranks of stock markets since the time of
Rockefeller and Morgan. Today, seven of the top 10 most
valuable firms in the world are platforms, including Amazon,
Alibaba, Facebook, and Tencent. The rules of the internet economy differ
from those of the industrial economy. When products compete with platforms,
the platforms almost always win. The problem is that platform design
is complex and counterintuitive. Steve Jobs tried and failed in the
1980s, and got it right 20 years later. Myspace should have won it’s winner
take all battle with Facebook, yet misunderstood key tradeoffs. Industrial firms like
GE, BMW, John Deere, are now struggling to
make this transition. In this class, we’ll explore
how the rules of strategy change when shifting
from product to platform, how organizational structure changes
as we scale value creation by inverting the firm, how to launch
platforms, where to start and how to build critical
mass, how to monetize when much that the platform offers
is given away for free. Over the next six sessions
of platform strategy, we’ll challenge you to think differently
about pricing, openness, and network effects. You’ll learn how to move the
boundaries of an industry and not just take a market as given. Come join me as we explore how
to build platform businesses and how to make them work for you. [MUSIC PLAYING]

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