Creating platform is the latest trend in the Silicon Valley

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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.

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