Creating platform is the latest trend in the Silicon Valley
The Silicon Valley has gradually understood the economics of the networked markets and so now provides strategic emphasis on creating platform instead of creating a product. Research has it that the most disruptive companies till date, be it Google to Amazon or from Apple to Uber or for instance Facebook, have never tried to develop a business model to sell their product rather they have always concentrated on creating a platform.
The idea of Platform is no longer a novel concept but its importance has increased manifold as all data is getting digitalized. The strategic focus of a platform is its inclusiveness despite it being open. Any platform provides the opportunity to bring together producers and consumers which enables interaction and exchange of quality information thereby rendering a competitive advantage. Apple is a good instance in this case as its business model from its initial stages was not just centered around selling its products but creating a network of app developers and app users. This created an eco-system where there was greater production and even greater consumption and this has led to Apple capturing almost 92% of the share.