Platform Revolution: How Networked Markets Are Transforming the Economy and How to Make Them Work for You
by Geoffrey G. Parker · 2016
In a nutshell
By Geoffrey G. Parker, Marshall W. Van Alstyne, and Sangeet Paul Choudary (2016, W.W. Norton), this book explains how two-sided platforms like Uber, Airbnb, and Amazon create value by connecting producers and consumers. It covers how to design, launch, and monetize a platform business.
Overview
Geoffrey Parker, Marshall Van Alstyne, and Sangeet Paul Choudary, researchers from MIT and Boston University, published Platform Revolution in 2016. It is a comprehensive guide to building businesses around two-sided or multi-sided markets.
Key Ideas
- Platforms create value by facilitating exchange between producers and consumers, not by owning inventory.
- Network effects mean a platform gets more valuable as more people use it.
- Solving the 'chicken-or-egg' launch problem is the hardest early challenge.
- Governance rules decide who can participate and how value is shared.
- Platforms can disrupt traditional 'pipeline' businesses across many industries.
Best For
Founders building marketplaces, SaaS ecosystems, or any two-sided business.
Reference
Platform Revolution: How Networked Markets Are Transforming the Economy and How to Make Them Work for You — publisher / official page. Summary adapted from the Awesome Startup Books collection.
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