Platform Scale

Platform Scale refers to the business model where value is created by facilitating interactions between external producers and consumers. Unlike traditional linear businesses that own and control resources, platform businesses enable others to create value and interact with users. This model leverages network effects, where the value of the platform increases as more participants join, creating a self-reinforcing cycle of growth. Examples include digital giants like Uber, Airbnb, and Amazon, which rely on their platforms to connect users with services and goods. The scalability and adaptability of platform businesses make them powerful in the digital economy.