In the past decade, the number of online platforms has increased significantly. This is not surprising, given the ability of those platforms to create a lot of value through the enablement of communication and business models that might not be realized otherwise. Besides, the operating costs of such platforms are relatively low, given the fact that they usually don’t hold inventory or tangible goods.
Edelman (2015) conducted research on online platforms and created a framework consisting of 5 questions entrepreneurs need to ask themselves when desiring to establish such an online platform. The framework supports entrepreneurs in effective strategic decision-making as they build their digital platform:
- QUICKLY ATTRACT A LARGE USER GROUP: Entrepreneurs need to ask themselves if they are able to attract a large group of potential users quickly. Mass sign-ups almost always remove uncertainties with regard to the future prospects of your platform, since it enables entrepreneurs t (...) Read more? Sign up for free
