Platform strategy is widely seen by most businesses as a strategy mainly for tech companies. Platforms are environments that connect different groups and derive benefits from participating members. The underlying concept goes beyond its use by tech firms.
Beyond just serving as a connection base for companies, platforms have quickly become a strategy to gain competitive advantage, which can create in-depth value for any business. For a business still considering adopting platform strategy, expansion plans will become more costly and even less effective. Most importantly in this digital era, non-adopters will in no time be left far behind in their various sectors.
According to a report by TechWire, about 88% of companies recognize digital platforms as crucial to their business strategy. But a few in this figure could still be looking out for the importance of platform strategy in their businesses.
Here are a few reasons to include a platform strategy as part of your business plan.
Helps in growing your business network
Digital platforms give room for businesses to grow a network for themselves. The network grows to become a business community, which is a powerful tool for business growth and marketing. One of the numerous impacts business networks have on companies is how proportionately more valuable each entity become when they are all connected. The effect of additional value can be seen in the successful interconnection among tech giants.
A platform gives every user a sense of belonging. Beyond that, it also helps businesses to increase the number of its users.
Staying ahead of your competitors
Every business is worried about competitions. And it’s their aim to always stay one step ahead of their competitors. Incorporating a platform strategy in your business plan will help the business to always be ahead of competitors. Platform strategy will give your competitors a hard time to catch up with you provided you’re offering the services every consumer in your business network needs.
Businesses that use digital platforms can be established in a market by building for themselves a strong user base. This serves as a strong point against competitors thereby making it difficult for them to participate competitively. Studies show that a strong user base yield better results for businesses than an expensive advertising campaign.
Build better rapport with customers
A business brand using platform strategy can build for itself an ecosystem covering all the needs of its customers. Once a business begins to provide its users with all they want such as a one-stop-center for all, it becomes difficult for those users to move to another brand. By using a platform strategy, businesses can establish and foster stronger relationships/bonds with its customers/users. Apple community, for instance, help to keep Apple users with the brand as long as Apple keeps offering the users' choice.
Platform strategy is a powerful and pervasive business tool. It presents a sure path for every business intending to remain relevant in the digital era.