Everyone wants to build a platform business, but
What makes a platform tick?
1) Trust
2) Timing
3) Premature dismissal of competition
4) Mispricing on one side of the market.
Are the most important factor that can determine success or failure of platforms, according to authors of The Business of Platforms.
Internet Explorer had a 95% market share in 2004, but poor product execution made Microsoft loose the apex title.
eBay China couldn’t develop trust in payments by using PayPal‘s bank like system, whereas Alibaba introduced an escrow based business model, which only paid sellers once customers are satisfied with their purchase.
Similarly, in India, Flipkart launched Cash On Delivery, which instilled trust in buyers and, in turn, became the ultimate factor in determining its success.
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