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Also known as: platform model, platform strategy

Platform Business

TechnicalStrategiesProduct

Definition

Platform Business: A platform business creates value by facilitating interactions between two or more user groups—rather than producing goods or services directly. Platforms enable others to build on top of them (developers, merchants, creators) and benefit from network effects as more participants join.

Example Usage

“We evolved from a product to a platform by opening APIs. Third-party developers now build integrations that make our product stickier.”

Common Misconceptions

Every software company should be a platform. Platforms require ecosystem investment; not all markets support them.
Platforms are just APIs. True platforms create value for all participants, not just technical connectivity.
Build the platform first. Start with core product value; platform expansion comes after product-market fit.

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