Platforms as a Business


In the realm of business, ideas are like stars in the night sky—countless, unique, and each with the potential to shine brightly. However, not all ideas are destined for success. One of the most common reasons for the failure of seemingly brilliant concepts is their lack of impact on a broader audience. In this fast-paced world, where attention spans are fleeting and competition is fierce, the significance of an idea cannot be underestimated. This blog post delves into the crucial role that platforms play in propelling ideas to success, drawing insights from the strategies of top IT companies and cautioning against the pitfalls of relying solely on Social Networking Systems (SNS).

The Significance of Impact

Picture this: a visionary entrepreneur walks into a room, bubbling with excitement about a revolutionary idea. While passion is undeniably essential, the potential impact of that idea on a wider audience is equally crucial. Many entrepreneurs find themselves trapped in a cycle where their brilliance shines only in the confines of their minds, failing to resonate with the world outside. This disconnect often stems from underestimating the importance of addressing a problem that impacts a substantial number of people.

It’s not uncommon for entrepreneurs to fall into the trap of pursuing ideas that lack mass appeal. Clients often approach consultancy firms with incredible ideas that have the potential to reshape industries, but they struggle to make their concepts resonate on a grand scale. This struggle forces them into making sacrifices that compromise their initial vision to fit into a more conventional business model.

Platforms as a Business  

After years of collaborating with clients and refining their visions, a key insight emerged: platforms are the linchpin to transforming a great idea into a global phenomenon. But what exactly are platforms, and why are they so transformative?

Think about the giants of the IT world: Apple, Meta, Amazon, Netflix, and Alphabet. Consider the mobile apps that have become ingrained in our daily lives: Facebook, Twitter, Instagram, YouTube, Google, Whatsapp, Telegram, Zoom, Spotify, and Threads. A common denominator emerges: platforms. These companies have moved beyond mere products or services; they’ve created entire ecosystems that revolve around their offerings.

A platform, in the context of this discussion, can be defined as a multidimensional ecosystem that envelops and supports a core product or service. This ecosystem serves as a haven for loyal users, offering them an interconnected web of solutions, engagement, and value that extends beyond the immediate product. Platforms create self-sustaining bubbles where users find all their needs met within a singular ecosystem, driving user loyalty and brand affinity.

The truth of the platform’s power is evident in the strategies of the top IT companies. These industry giants have harnessed the concept of platforms to create vast networks of interconnected products and services that cater to a diverse range of needs. They’ve tapped into the psychology of human behavior, where convenience and familiarity drive users to remain loyal to a single ecosystem.

Take Apple, for instance. Their platform integrates hardware (iPhones, MacBooks, etc.), software (iOS, macOS), and services (Apple Music, iCloud). Users find themselves invested in the entire Apple ecosystem, making it challenging to switch to alternatives. Similarly, Meta (formerly Facebook) built an empire with Facebook, Instagram, and WhatsApp, offering users a comprehensive social media ecosystem that covers diverse communication needs.

While the allure of Social Networking Systems (SNS) is undeniable, banking solely on them as a primary business model is a precarious proposition. Changing consumer behavior is a monumental challenge, especially when competing against entrenched players with unlimited resources. It’s akin to pushing a boulder uphill while simultaneously engaging in a battle against industry giants.

SNS companies attempting to lure users away from established platforms face a daunting uphill struggle. To succeed, they need more than just a good idea—they need a product that’s truly outstanding. Enormous marketing budgets are a must, as is the ability to sustain the business until it gains traction. And even if relevance is achieved, it’s fleeting. Established players can quickly replicate successful features, overshadowing the new entrant.

Platforms as a Business

In the SNS landscape, only two outcomes tend to emerge: acquisition or fading into irrelevance. Either the smaller player is absorbed by a larger one, or they watch as their users migrate back to the established platform. The journey is fraught with uncertainties, and the odds are stacked against the newcomer.

In a world dominated by innovation and competition, the success of an idea hinges on its impact and relevance to a broad audience. The concept of platforms has emerged as a game-changer, enabling companies to create self-contained ecosystems that cater to diverse user needs. The strategies of top IT companies stand as a testament to the power of platforms in cultivating user loyalty and transforming ideas into global phenomena.

Conversely, the allure of SNS should be approached cautiously. Relying solely on these systems as a business model can lead to an uphill battle against industry giants with deep pockets and established user bases. While the journey might seem exciting, the destination is often acquired or obscured.

In the ever-evolving landscape of business and technology, the message is clear: think beyond the immediate product or service, embrace the potential for impact, and harness the transformative power of platforms to turn your idea into an empire. And whatever you do, make community(SNS) as an added feature, not the main.

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