🚀 Quick Tip #6: Overcoming the 'Chicken and Egg' Challenge in Platform Business Models 🥚🐣
Platform business models are a staple in today's digital economy. They facilitate interactions between interdependent groups, creating substantial value. But aligning these groups initially is a puzzle - the notorious 'Chicken and Egg' dilemma. 🥚🐣
The predicament lies in attracting two distinct user groups to your platform, but which one first? The supply or the demand?
Think Airbnb, LinkedIn, OpenTable. They all cracked a common puzzle: the 'Chicken and Egg' conundrum. 🥚🐣
🏠 Airbnb: Their secret sauce? Target hosts! They scaled their host base by tapping into existing networks like Craigslist, drawing guests like bees to honey. Clever incentives also revved up early growth.
💼 LinkedIn First, they wooed professionals. With a pitch of networking and showcasing prowess, professionals flocked. Businesses? They followed, lured by this rich professional pool.
🍽️ OpenTable: Their journey was rocky at first. Attempting both sides – restaurants and diners – they stumbled. But a shift in strategy worked wonders. They built a restaurant network by offering free reservation systems to restaurants in key cities. As this grew, diners gravitated, pulling in even more eateries.
🔑 Lesson: Cleverly prioritise one user group. With strategic perks and deep understanding, ignite a domino effect, magnetising the other side.
Leaders, how did you manoeuvre your platform's 'Chicken and Egg' puzzle? Share your success (or learning) tales below!
Check out more Quick Tips and Actionable Insights
Learn More about our boutique consulting firm
Contact David Kolb Consultancy today to find out more about our business consulting, and design thinking coaching built to deliver lasting impact and exceptional value.
Commentaires