Business classical exploration for two-sided platforms – Term Paper

This segment illustrates the integration of e-business model context for Osterwalder (p.2) with the two-sided market features that are outlined in the previous part to develop and adapted platform for evaluating the business representations of the two-sided market platforms.

·      Innovation production

In analyzing the business model for a two-sided market layout, there are various components that need to be considered that is;

Ø    The value proposition provided by the platform on both sides

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Ø    The features and outline of the purchaser and seller (target consumers) sides in the market targeted.

Ø    The ability to the market set-up to repetitively facilitate value creation and processes of the delivery (capabilities).

Infrastructure management

In relation to the infrastructure configuration, the core proposition value refers to the transactions that occur between both market sides. Thus, the value proposition is accrued from a number of undertakings that the provider of the platform provides so that the two of the sides can have exposure to one another causing the transactional procedures to be conducted effectively. In general, the control system of the platform has to construct a process and activities that enable the three vital factors of a business model.

Ø    Enabling communication platform between the two sides of market platform

Ø    Measuring the logistics which model can the two sides use to exchange value

Ø    Evaluating capabilities of both sides through the quality and quantity of their goods and services.

The size of the network is the core determinant of the suitability of two side markets in relation to quantity. The platform delivers a tremendous amount of value to its subscribers and entices the new subscribers when it has attained the optimal mass. With this perspective, it is of the essence to understand of how the platforms acquire traction during their development stages and the incorporation of growth plans because it assists in deciphering the ‘chicken-and-egg’ issue. The problem of quality is dual especially in a peer-to-peer market because if the goods and services provided are not from a professional person, there is no laid out platform for quality control. This accrues to the risk of the good or service not meeting the demands of the users, therefore, they can equally attain the product or service from the traditional organizations. The problem of quality control of a product or service contributes to the rise of poor matching of quality as the customers might not acquire their necessities. Therefore, matching quality is an impact of the incorporation of technology in a platform, the challenge arises when the platform is incapable of delivering a suitable match for a purchaser search query.

When considering the two-sided marketplace and its platforms, it is essential for the platform provider to develop questions to enable collecting of information and seeking to understand the adoption of key aspects so as to render proposition of value to customers.

;; ; ; The factors the platform incorporated in order to attain critical mass

;; ; ; The strategies the platform developed so as to enhance quality

;; ; ; The activities the platform engaged in so as to enable the flow of communication between the two sides

;; ; ; What aspects are incorporated in a platform to develop their logistics of transactions between the two sides of the marketplace?

Thus, for organizations to experience fast growth rate, they must utilize the role of their partners in different regions, particularly for non-essential undertakings. A partner to the business usually aims at seeking the organization’s partner networks, understand the core aspects, and developing and rendering the value proposition.

·      Customer relationship management

The two-sided market platform has to in-depth value customer relationship approach for both sides of the marketplace that is the platform providers and users. The concept of a customer potentially determines the performance, essence, and growth of a platform, because it facilitates the transactions occurring amongst more than two groups. The pillar of customer relationship business structure analyses the strategies of an organization’s data whereby the organization collects and evaluates information about its clients and what the analyst does with the data should also be examined. Secondly, there should be an evaluation on the channels in which the firm uses to connect with the clients and identification of new clients. In the collaborative consumption, aspect organizations should value trust and protection of its customers because the platform functions to connect new users in peer-to-peer transactions and dealings.

·      Financial factors in business

The pillar of financial aspects relates to the cost model and profit structures of the firm. The revenue factor represents the difference between two aspects while the cost structure is evaluated in relation to business operations and practices outlined in the infrastructure configuration pillar. In the situation of a two-sided marketplace platform, pricing goods and services are challengeable and have a directed relationship to subsidizing decision making for a platform.