NORDSCI Conference proceedings 2019, Book 2

Business and management

ECONOMIC STUDIES IN BUSINESS PLATFORMS - COMPLETELY NEW APPROACH IN MICROECONOMICS

Assist.Prof. Dr. Ivars Godmanis 

ABSTRACT

With the global rise of Web 2.0 a completely new type of business models - business platforms have arisen and nowadays Amazon, Apple, Google, Facebook are convincingly taking over the lead in the global business world [1]. These four flagship business platforms are followed by countless other platforms in all spheres of business and contemporary life (eBay, Airbnb, Uber etc.). However, the MBA study courses that could cover all sides of business platform microeconomics and explain their enormous economical success are rarely provided in Europe and still not existed in many countries including Latvia.
This paper describes the author’s research of specific microeconomics characteristics of business platforms, the different ways of thinking in marketing, competition and money making strategies in business platforms, platform business determinants, detailed comparison of traditional (“pipe”) business models and business platforms, the strengths and weaknesses of platform business models. As the result of this research author has elaborated the original MBA study course - “ Business Platform Microeconomics ” and its detailed plan is attached in references of this paper [2].
In conclusion author expressed how specifics of business platform microeconomics define completely different main components of the business model in business platforms in comparison to traditional “pipe” type business models, what is explaining the enormous economic success of this new business model- business platforms.

KEYWORDS

business platforms, traditional “pipe” type business models, non-linear value increase, interaction instead production, orchestration instead command& control, co-creation of products and services

REFERENCE

NORDSCI Conference Proceedings 2019, Book 2, Conference Proceedings, ISSN 2603-4107, ISBN 978-619-7495-06-5, ECONOMIC STUDIES IN BUSINESS PLATFORMS - COMPLETELY NEW APPROACH IN MICROECONOMICS, 27-35 pp, DOI paper 10.32008/nordsci2019/b2/v2/03