April 6, 2020
Retailers: How The Platform Revolution is Already Impacting Your Business

Retailers: How The Platform Revolution is Already Impacting Your Business


you [Music] consumers have come from a time of darkness into the light before the advent of the internet there was no information about comparable products product pricing and consumers had to physically go to a store show up and say I’m looking for a camera what you have and they had to choose from the selection available and that was the age of darkness for consumers and power for retailers but the advent of the web changed that power dynamic completely away from the retailers to today’s empowered customer so the web really created three transformations that created today’s empowered customer the first is information ubiquity because product information is completely available today the second is really time and space compression and you can see this as evidenced by Amazon same-day shipping and the last is interconnectedness specifically between systems companies today can use API to connect their own systems or connect out to other businesses systems this allows for better information sharing and collaboration that creates more customer value a great example of this collaboration is the team all which is owned by Alibaba Chinese customers 30 mall can buy products for themselves or for businesses from brands located all around the world at great prices and this new collaborative environment for foreign brands actually allows them to enter the Chinese market which is the most lucrative ecommerce market in the world the platform revolution is actually about harnessing all of these changes to meet the demands of today’s empowered customer what changes in the platform model is what we refer to as businesses moving from pipelines to platforms and the pipeline model it’s really an old model where it only works if a retailer is able to buy a good low and sell it high there’s a chain of value which starts with a manufacturer creating a product marketing it to retail the distributor those buy it they store it they merchandise it sell it and the consumers at the end purchasing it and the consumers actually paying for that really unvalued value change today’s consumers to smart though they’re no longer willing to pay the premium Frank so businesses can’t operate as usual so a business that doesn’t operate as usual is Amazon Amazon operates on the platform model and in the platform model they take out the inefficiency between sellers and customers and they facilitate a direct connection the model is extremely valuable because they also don’t store and ship goods themselves but third-party marketplace sellers do so they aren’t restricted by physical structure their only limitation is their Technology structure in the platform model there are really two main benefits one is they cut out that inefficient part of the value team we just talked about and the other is the enable bi-directional information flow so if you’re the platform operator you’re able to offer very low prices because we don’t buy store or ship goods and there’s less merchandising involved you also enable that bi-directional flow of information between consumers and sellers which makes this better total product offer and really the main point is customers are no longer at the end of an economic value chain they’re at the center of it miracle is here to help our customers get on board the platform revolution by launching their own marketplace Amazon has pioneered and proven the model and they’ve created one of the world’s most recognizable brands and tremendous customer value if you build your own marketplace they’re able to build on your brand strengths and capitalize on the platform opportunity

Leave a Reply

Your email address will not be published. Required fields are marked *