MIT/ILP Calendar Event
Platform Strategy: Building and Thriving in a Vibrant Ecosystem
In 2013, fourteen of the top 30 global brands by market capitalization were platform-oriented companies – companies that created and now dominate arenas in which buyers, sellers, and a variety of third parties are connected in real time. In today’s networked age, the cloud, social media, and mobile devices are fueling this platform competition, and more and more companies want in. However, many companies do not succeed in becoming platform leaders because their technology and/or business strategies fall short.
While many platform strategies are well known (e.g. Apple’s iTunes), there are other less-heralded platforms that are exploring new ways to create and capture value. These include: dynamic pricing, usage fees, highly targeted product and service offerings, inbound marketing, and network effects.
Key questions the faculty explores include:
- Is a customer segment with the highest “willingness to pay” the most valuable segment?
- When is tying a customer to a platform (sometimes called “lock in”) counter-productive?
- Which pricing formats seem to boost revenues but actually slow platform adoption?
- How can companies get in front of the common evolution patterns of platforms?
- When should leaders be wary of “platform envy?”
Through case studies and Q&A, experienced managers will emerge with insights for refreshing their company’s strategic approach and participating profitably in the multi-sided marketplaces of the future.
By the end of this two-day course, participants should be able to:
- Identify examples of traditional and non-traditional forms of platforms
- Describe the common evolution patterns of multisided platforms, including same-side vs. cross-side network effects
- Identify customer and user groups whose affiliation with the platform is most valuable
- Decide whether to try to “tie” customers to a platform or not – the value of open vs. proprietary networks
- Design strategies to undermine an established platform or to defend against such attacks
- Describe the principles of platform pricing and how to inform the design of an effective pricing format
- Recognize the concrete implications of trade-offs in platform design, governance, and staging
- Decide whether a given value proposition is best developed as a stand-alone platform, or as a complement embedded into another platform’s ecosystem…or whether to pivot away from platform strategies all together.
MIT is located in Cambridge, Massachusetts. The campus, situated in close proximity to Boston’s Logan International Airport, profits from Boston’s excellent public transportation system and the on-campus Tech Shuttle. The closest subway station is Kendall Square, which acts as a commercial center for MIT and the local community.
ILP members receive a 15% discount on all MIT Sloan Executive Education open enrollment programs held in Massachusetts. ILP members receive a 15% discount on all MIT Professional Education courses. To obtain the discount code, click here (you must be signed in to this website as an ILP member to access the code).