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  • Harvard Business Review

How to Launch Your Digital Platform: A Playbook for Strategists

By: Benjamin Edelman
  • Format:Print
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Abstract

The ubiquity of Internet access has caused a sharp rise in the number of businesses offering platforms that connect users for communication or commerce. Entrepreneurs are particularly drawn to these platforms because they create significant value and have modest operating costs, and network effects protect their position once established—users rarely leave a vibrant platform. But these businesses also raise significant start-up challenges. Every platform starts out empty. Platforms need to immediately attract not only many users but also multiple types of users. For example, it's not enough that many customers want to book taxis by smartphone. Drivers must also be willing to accept smartphone bookings. Harvard Business School professor Ben Edelman has been studying the dynamics of platform businesses and the strategies for launching them for 10 years. In this article he draws on research on dozens of platform sites and products to offer a framework for building a successful platform business. It involves asking five basic questions: (1) Can I attract a large group of users at once? (2) Can I offer stand-alone value to users? (3) How can I build credibility with customers? (4) How should I charge users? (5) Should my platform be compatible with legacy systems?

Keywords

Platforms; Launch; Mobilization Strategy; Two-Sided Platforms; Network Effects; Adoption; Entrepreneurship; Information Technology Industry; Advertising Industry; Media and Broadcasting Industry; Transportation Industry; Financial Services Industry

Citation

Edelman, Benjamin. "How to Launch Your Digital Platform: A Playbook for Strategists." Harvard Business Review 93, no. 4 (April 2015): 90–97. (Reprinted in Launch a Start-Up That Lasts, Harvard Business Review OnPoint, Winter 2016.)
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  • An Introduction to the Competition Law and Economics of 'Free' By: Benjamin Edelman and Damien Geradin
  • The Market Design and Policy of Online Review Platforms By: Benjamin Edelman
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