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Mastering the intermediaries.

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    |July 24, 2014
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    This summary is machine-generated.

    Businesses can reduce reliance on major platforms like Amazon and Apple by leveraging platform needs, addressing discrimination, creating alternatives, and fostering direct customer relationships. These strategies help retain more value.

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    Area of Science:

    • Business Strategy
    • Platform Economics
    • Digital Markets

    Background:

    • Major online platforms (e.g., Amazon, Apple, Google) capture significant value from businesses.
    • Retailers and manufacturers increasingly depend on these platforms for customer referrals and sales.
    • Platform fees and policies can disproportionately impact company profitability.

    Purpose of the Study:

    • To present actionable strategies for businesses to decrease their dependence on powerful digital platforms.
    • To provide frameworks for negotiating better terms and maintaining business autonomy.
    • To analyze successful case studies of platform disintermediation.

    Main Methods:

    • Qualitative analysis of business case studies.
    • Examination of platform dynamics and negotiation tactics.
    • Review of strategies for platform independence.

    Main Results:

    • Four key strategies identified: exploiting platform comprehensiveness, identifying and countering platform discrimination, creating alternative platforms, and fostering direct customer engagement.
    • Case examples illustrate successful implementation of these strategies by companies like American Airlines, eBay, Fandango, and restaurants.

    Conclusions:

    • Businesses can regain control over value creation by strategically managing their relationship with dominant platforms.
    • Proactive strategies are essential for mitigating the risks associated with platform dependency.
    • Diversifying customer acquisition channels and strengthening direct relationships are crucial for long-term business resilience.