Lecture 4: Platforms and Marketplace Flashcards
What is a Marketplace?
An arena of commercial dealings.
How do they work?
Either virtual or physcial. Marketplaces are a type of Platform.
Types of Platform
- Virtual Marketplace
- Technology. e.g Operating System
- Airport
- Social Media
Explain what a Multi-sided market is
Network Effects:
Side 1: The Buyers
PLATFORM:
Complementors: Paypal, Advertisers, Delivery Services
Network Effects:
Side 2: Sellers
Network Effects. What is this?
Positive Orientation. Leads to a “tipping point”/ “Critical Mass” whereby the network is self sustaining.
Negative Orientation: leads to decrease of participation. E.g Bebo, MySpace
Can also be Direct or Indirect:
- Direct (Same-side)
- Indirect(Cross-sde)
List All of the Platform Strategy Components
- Value Poposition: What is the fundamental motivation to participate in the platform?
- Key Platform Stakeholders: Who are the key stakeholders that contribute to the platform? And who are there external parties?
- Peer Segments: Who (producers, consumers), interact with the platform?
- Key Transactions: what are the recurring transactions happening between the different peer segments?
- Channels: Which channel does peer segments select and utilise to get in contact and execute transactions.
- Value Exchange: How is value exchanged?What form? Each Transaction should correspond to a channel and a type of value exchanged.
What are the Platform Strategy Canvas?
List main Revenues and Expenses.
- Purchase (sale)
- Subscription payments/fees
- Renting/LEasing
- Transaction fees
- Software revenues
- Web-based Revenues
What are Expenses?
- An out flow of cash to another company or entity.
- Also a decrease in value (depreciation) of a major assest can be a form of expenses
- There are two forms of expenses: Fixed and Variable
List exampels of typical expenses
- Employee Related (wage, salaries, contracts)
- Financial: Interest, insurace and licences
- Supplies: Office Supplices
- Rent and Leased items
- Small equipment, tools, software
- Advertising
- Travel and Accommodation
- Electricity, Gas, Water
- Motor Vehical maintainance costs
- Telephone and Networks
- Professional: Legal , Accounting, Audit
- Government Charges: Rates, Licences
- Maintainance: Repairs, Cleaning
List all examples of Timing Expenses
- Weekly
- Fortnightly
- Monthly
- Quarterly
- Six-Monthly
- Annually
- As required…
List three types of financial statements
- Balance Sheet: Displays what company owns (assests), how much it owes (liabilities), and the difference between the two (equity) at a single moment in time
- Income Statement (profit and loss statements): shows how much company made (revenues), how much it lost(expenses), and the difference between the two (profit), over a certain time period
- Cash Flow statement: over a certain time period (per quarter of a year). , this shows the amount of money that comes in and goes out (Core operatons, investing and financing), in a company.
Cash Flow is Key. Why?
Most businesses fail because they dont manage the cash flow. So a balance between profit, expenses, revenues.
What is WC?
Working capital
Sometimes called a seed money. Borrowed money so that a business can run. Either borrowed from venture capitalists, banks, business associates, family or friends.
What is BEP?
BreakEven Point.
The point in time when the total revenues (TR) equal the Total costs (TC).
Determine how to Generate Revenues:
