L4: Platforms & Network Effects

Question 1

The chicken/egg problem

Answer 1

Producer or users on the platform first

Question 2

Tactics to solve the chicken/egg problem

Answer 2

1. Aquire producers
2. Ensure excellent producers
3. Reach out to all stakeholders
4. Rope in a big client
5. Promise to find buyers for the suppliers
6. Create a niche community (FB)

Question 3

Critical mass

Answer 3

Getting enough users for the platform to live

Question 4

3 Strategies for securing critical mass

Answer 4

1. Zig Zag: Push both sides simultaneously
2. Two-step strategy: One group ahead of the other
3. Commitment: One group must invest to participate (gets guarantee on that the other group will join)

Question 5

Explain the critical mass frontier

Answer 5

Explain model

Question 6

Critical Mass Tactics

Answer 6

1. Self-supply
2. Marque users
3. Make them believe (trust)
4. Narrowly focused effort
5. Pricing

Question 7

Network Management (blank)

Question 8

The value of platforms is based on tangible and intangible assets, explain

Answer 8

Tangible: firm/product centric platform
Intangible: Norms, rules, activities

Question 9

4 orchestration mechanims to develop on the platform value

Answer 9

1. Clear VP communication
2. Collaboration (inducing innovation among network members)
3. KPI alignment
4. Teamplayer (Involve network when adjusting VP)