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What is a Platform?

The term “platform” is used in a variety of contexts, but generally refers to a “base or foundation that supports something.”

Platforms in IT In the IT field, a platform refers to:

• Software Foundation:
  • Operating System: Examples include Windows, macOS, and Linux. These serve as the foundation upon which software operates.
  • Middleware: This refers to software that operates between applications and the OS, such as databases, web servers, and application servers.
• Service Foundation:
  • Cloud Platform: Services like AWS, Azure, and Google Cloud Platform provide computing resources over the internet.
  • Web Service Platform: These platforms provide the foundation for building websites and apps, such as WordPress and Shopify.
  • Social Media Platform: Platforms like Facebook, Twitter, and Instagram allow users to communicate with each other.

Platforms in Business In business, a platform refers to:

• Marketplaces: Online marketplaces like Amazon and Rakuten Ichiba where goods and services are bought and sold.
• App Stores: Platforms like App Store and Google Play for distributing mobile apps.
• Service Provision:
  • Financial Platform: Platforms that provide banking and payment services.
  • Ride-sharing Platform: Platforms like Uber and Lyft that provide ride-hailing services.

Common Characteristics of Platforms

• Common Foundation: Various services and applications operate on a common foundation, enabling efficiency and collaboration.
• Diverse Users: A large number of users contribute to the creation of new value and services.
• Network Effect: The value of a platform increases as the number of users grows.

Summary Platforms are essential concepts used across a wide range of fields, from IT to business. It is important to understand the basic meaning of “a base or foundation that supports something” and then grasp the specific meanings within each context. For more detailed information, search for the following keywords:

• Types of platforms
• Platform business
• Cloud platform
• Platform strategy Please feel free to ask any further questions. For example:
• “Can you explain the mechanism of a social media platform in more detail?”

Platform Business

A platform business is a business model where a company provides a specific platform (foundation) that allows various players (individuals, businesses, etc.) to interact and create new value.

Characteristics of Platform Businesses

• Network Effect: The more users join a platform, the more valuable it becomes. For example, on social media platforms, as the number of users increases, so do opportunities for information exchange and communication, leading to increased platform vitality.
• Multifaceted Value Creation: Platforms can create a variety of values, not just as places to buy and sell goods and services but also for information sharing, community building, and creating new business models.
• Role of Platform Operators: Companies that provide platforms (platform operators) are responsible for operating and managing the platform, setting rules, and providing payment systems.
• Low Barriers to Entry: For individuals and businesses joining a platform, the barriers to entry are often lower compared to traditional business models.

Examples of Platform Businesses

• E-commerce Sites: Platforms like Amazon and Rakuten Ichiba that mediate the buying and selling of goods and services.
• Social Networks: Platforms like Facebook, Twitter, and Instagram that facilitate communication between users.
• App Stores: Platforms like the App Store and Google Play for distributing mobile apps.
• Sharing Economy: Platforms like Uber and Airbnb that mediate the lending and borrowing of excess resources among individuals.

Advantages of Platform Businesses

• Economies of Scale: By attracting a large number of users, costs can be reduced and revenue increased.
• Data Utilization: By analyzing user behavior data, new services and features can be developed.
• Diverse Business Models: Various business models can be born on platforms, diversifying revenue sources.

Disadvantages of Platform Businesses

• Intense Competition: Many companies are entering the platform business, leading to intense competition.
• Strengthening Regulations: As platform businesses expand, governments may impose stricter regulations.
• Platform Dependence: Business models that rely on platforms are at risk of changes in platform rules or service termination.

Summary Platform businesses are a rapidly growing business model driven by the development of the internet. Understanding the characteristics, advantages, and disadvantages of platform businesses is essential for leveraging them in one’s own business.

For more information, search for the following keywords:

• Platform strategy
• Platform operator
• Network effect
• Sharing economy
• Digital transformation

Please feel free to ask any further questions. For example:

• “What strategies are needed to succeed in a platform business?”