PLATFORMS & MARKETPLACES

See Our Platforms & Marketplaces Activities!

The platform (and marketplace) revolution has brought about a transformative shift in the business landscape, offering companies unprecedented opportunities in the digital economy. While Europe may lag behind the US and China in terms of large-scale platforms, the region boasts a diverse range of innovative platforms that cater to different needs and markets. By combining Europe’s commitment to the circular economy with the power of platforms, the region can gain a competitive advantage, drive innovation, and create value for businesses and consumers.

Top 10 Key Takeaways

1Strategy for Success

Every company should have a strategy for the platform economy that considers different positions from creating a platform, building on top of existing platforms to working with platforms..

2Platforms and Circular Economy Companies can leverage the concept of a circular economy to create platforms that drive innovation, reduce waste, stimulate product redesign and provide value to businesses and consumers.

3Advantages of Circular Marketplaces

Lower transaction costs, More buyers and sellers, Positive network effects, Expanded reach, Incentives for product redesign, Easier to grow community, Incentives for ecosystem innovation.

4Fundamental Questions to Answer

A successful platform business is characterized by its ability to answer four fundamental questions: where to play, how to scale, how to win, and how to capture value.

5Platforms for Good Platforms have created concerns on inequality, power imbalance and privacy. To address these, platforms should actively participate in developing fair and effective regulations and embed ethical principles in their incentives and protocols.

6Why corporate should consider platforms?

Platforms encourages business to act as enables, connecting various stake holders to create new value propositions and revenue streams, Platforms can alleviate inefficiencies and enable corporations to stay top-ofmind for customers and continue delivering value.

7Network effects vs Virality

A network effect occurs when adding a user to a network makes the network more valuable for all users bringing scalability and defensibility. On the other hand virality refers to the phenomenon where growth leads to more growth, as users spread the word.

8Rise of B2B Marketplaces

B2B platforms growth135% growth last year and providing opportunities for niche specialization. Niche marketplaces cater to specific markets or industries, offering targeted and tailored shopping and a more level playing field for smaller brands and entrepreneurs.

9Vertical Integration, Insights and Trust

Modern marketplaces focus on vertical integration by offering additional services that strengthen the value proposition, and valuable tools like dashboards and reporting that provide meaningful insights. Ethical business practices, sustainability and trust are also increasing in importance.

10Chicken or egg, how to launch a marketplace?

B2B Marketplaces typically focus on attracting buyers first, as they are the one driving the demand for the products and services offered. B2C Marketplaces often attract sellers first, as they are the ones providing the products and services that will attract buyers.

Oliver Birk Director Platform Business BASF

Coatings

“Not everybody needs to own a platform - but you need to have a strategy to deal with them.”