Platform Strategy

Abstract

This article provides an encyclopedic survey of the platform strategy literature and is organized around launch strategies, governance, and competition. A platform strategy is the mobilization of a networked business platform to expand into and operate in a given market. A business platform, in turn, is a nexus of rules and infrastructure that facilitate interactions among network users. A platform may also be viewed as a published standard, together with a governance model, that facilitates third party participation. Platforms provide building blocks that serve as the foundation for complementary products and services. They also match buyers with suppliers, who transact directly with each other using system resources and are generally subject to network effects. Examples include operating systems, game consoles, payment systems, ride sharing platforms, smart grids, healthcare networks, and social networks.