Platform Scale Book Summary - Platform Scale Book explained in key points
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Platform Scale summary

Sangeet Paul Choudary

How an emerging business model helps startups build large empires with minimum investment

4.5 (52 ratings)
18 mins

Brief summary

'Platform Scale' by Sangeet Paul Choudary explains how platforms such as Facebook, Uber and Airbnb are dominating today's economy and how entrepreneurs can build and scale their own platform businesses.

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    Platform Scale
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    Business design is shifting from the old model of pipes to the new model of platforms.

    The internet is revolutionizing the world: the way we communicate, the way we consume media and even the way we do business. In fact, the old model for doing business is slowly fading away.

    For decades, the standard method for building a business involved using pipes. You can easily imagine the pipe model by visualizing a business at one end of the pipe offering products or services, and the customers at the other purchasing what’s on offer.

    This model worked well for many years in traditional industries, and its sway was so strong that early digital business used a similar model. Take the first version of Amazon, which was simply an internet take on a classical marketplace. Software companies like Windows worked in a similar manner: they designed products and pushed them through the pipe to their consumers.

    Since then, the rapid development of the internet has forged a new model. Two forces, in particular, have played a crucial role. First, we are increasingly interconnected by mobile devices that allow us to always be online. Second, goods are no longer produced in one single location. This decentralization allows companies to produce and sell in different places.

    In consequence, pipes are fading into the background, and platforms are moving into the limelight.

    Platforms are virtual environments where users can connect and exchange value with each other. They allow producers and consumers to interact, which means that producers are no longer limited to the old paradigm of producing goods, holding inventory and marketing products. Instead of creating the products themselves, businesses build platforms and let the users generate the value: like sellers and buyers on eBay, drivers and passengers on Uber, and video creators and viewers on YouTube.

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    What is Platform Scale about?

    A new kind of business has emerged during the last decade. Facebook, Airbnb, YouTube, Twitter have exploded in popularity – but what do these companies have in common? They’re all platforms: they gather millions of users and achieve billion-dollar valuations, but instead of products, they offer something very different. Platform Scale (2015) offers an insightful analysis of the mechanisms that drive this new platform business model, and how it achieves skyrocketing growth.

    Platform Scale Review

    Platform Scale (2015) is a thought-provoking exploration of how digital platforms have disrupted traditional business models and revolutionized the way we consume goods and services. Here's why this book is worth reading:

    • The book offers insightful analysis into how companies such as Airbnb and Uber have leveraged platform strategies to achieve rapid growth and dominate their industries.
    • Packed with case studies and real-world examples, it provides actionable frameworks and practical tips to help businesses thrive in the platform economy.
    • With its forward-thinking perspective and focus on innovation, the book keeps readers engaged and drives them to consider the potential of platforms in their own industries.

    Who should read Platform Scale?

    • Business students eager to learn about the new economy
    • Aspiring entrepreneurs, interested in the do’s and don’ts of a platform strategy
    • Social media users curious about the secrets of their favorite platforms

    About the Author

    Sangeet Paul Choudary is the CEO of Platform Strategy Labs. He has written for several leading publications such as TechCrunch, Forbes, Wall Street Journal and Wired.

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    Platform Scale FAQs 

    What is the main message of Platform Scale?

    The main message of Platform Scale is that successful businesses today are built on platforms that enable others to create value.

    How long does it take to read Platform Scale?

    The reading time for Platform Scale varies, but it typically takes several hours. However, the Blinkist summary can be read in just 15 minutes.

    Is Platform Scale a good book? Is it worth reading?

    Platform Scale is a valuable read for anyone interested in understanding how platforms have reshaped the economy and the strategies behind successful platform businesses.

    Who is the author of Platform Scale?

    The author of Platform Scale is Sangeet Paul Choudary.

    What to read after Platform Scale?

    If you're wondering what to read next after Platform Scale, here are some recommendations we suggest:
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    • 7 Strategies for Wealth & Happiness by Jim Rohn
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