ABSTRACT

This chapter suggests that the 'whole' is worth more than the 'sum of its parts', and that the resulting platform-powered ecosystem becomes stronger. It explores how business models can complement each other to reinforce value propositions by presenting high-level case studies on Amazon, Apple and Google. Amazon's marketplace is a great example of a platform with many value-adding features, on the merchant side – as discussed – but also on the buyer side. Amazon is getting the best of both worlds by combining the reach of platforms with the control of simple distribution models in order to be a 'one-stop shop'. When connecting large numbers of buyers and sellers, as happens with game developers and gamers, or writers with readers, Amazon uses a platform model with its Fire operating system and it’s Appstore. Leveraging platform business models with more traditional ones was initially an organic process for Amazon.