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Platform-based business models

NBD412 Platform-based business models

  • Topics

    Platform business models are not a new invention of the digital era. Platforms create value by facilitating transactions between two (or more) interdependent groups and for a long time this has mainly happened in brick-and-mortar locations like bazaars, shopping malls or auction houses. With the rise of the Internet, transaction costs for connecting groups have dramatically declined, facilitating exchanges at an unprecedented scale. Unsurprisingly, many of the most valuable firms are platforms like Apple, Amazon, Facebook, Alibaba or Visa. Understanding platform-based business models is crucial for successfully managing a platform business or creating an own start-up because they differ greatly from traditional (linear) business models and applying the economics of traditional firms to platforms will generally lead to misguided strategies and wrong implications.

    In this course, we draw on theoretical work to guide course participants in negotiating the challenges of platform-based business models, e.g. network effects and platform competition. While the course is not primarily technically focused, the technical aspects needed to understand firm behavior as well as the corresponding implications related to platforms will be covered and accompanied by relevant case studies presented in the context of leading examples of internet and technology platforms. The course will, although not exclusively, be particularly valuable to three types of students: (i) those who plan taking management positions in platform businesses, especially in those where technology plays an important role; (ii) those who anticipate consulting, i.e. doing firm strategy analysis for, platform businesses; (iii) those who intend to work for a regulatory agency with a primary focus on the digital economy.

  • Learning outcome

    Knowledge

    Upon successful completion the student

    • knows the common aspects of platform businesses
    • is informed about the relevant literature on platforms
    • can apply the theoretical insights to real world cases

    Skills

    Upon completion of the course the student

    • can analyze the relevant margins of competition between firms active in multi-sided markets
    • has gained the ability to develop applicable business strategies
    • has developed an understanding of relevant competition policy issues

    Competences

    Upon completion of the course the student

    • has an advanced understanding of economic principles for industry analysis
    • is able to analyze and evaluate the implications of changes in regulation
    • can use the acquired competencies to identify solutions to relevant questions and derive effective business strategies

  • Teaching

    To be announced.

  • Requirements for course approval

    To be announced.

  • Assessment

    To be announced.

  • Grading Scale

    To be announced.

  • Semester

    Spring. First time Spring 2019.

  • Literature

    To be announced.

Overview

ECTS Credits
7.5
Teaching language
English.
Semester
Spring

Course responsible

Assistant Professor Mohammed Mardan, Department of Business and Management Science.