Moving Towards Platform Economy

Platforms & Globalization

Platforms play a big role in modernisation and the economy. Platforms also affect globalization in a massive way.

• It lead to the reshaping of the existing trade flows between countries and have created a unified approach to selling and marketing items globally.
• It expands the consumer base, platforms affected globalization as it created a central system that allows effective interactions between customers and businesses across the world.
• Overall it minimizes costs such as production costs and mail costs, etc.

Platforms & Outsourcing

Platforms allow firms to outsource more of their activities. Outsourcing is one of the best ways to save time in this modern age of technology.

On the other hand, platforms might affect outsourcing since they tend to favor locally concentrated supply chains.

This encourages businesses to consider the multi-local building as an alternative to outsourcing.

The Role Of Platform Economy In-Service Trade Vs. Product Trade

Trading of goods and products is now faced by the competition of an increase in service trade.

This is because digital technologies have enabled product-based business models to gradually change into service-based ones.

Platform Economy & Social Media

Platforms such as Facebook and others already have access to the personal data of users and they allow the transferring of specific data to third-party platforms such as advertisers and Google.

This is both good and bad at the same time. For example, advertisers who choose to place product ads on Facebook and Instagram are given the ability to target users with specific hobbies, ages, and locations. They claim it helps them better market their product or service.

The system also tracks the activity of users based on the data they have given when they first registered as well as their recent activity on the platform. This way, the advertisments are customised for them according to their personal data and activity.

On the other hand, the government and police also can be given access to the identification and personal information of users on these platforms.

This is amazing for detecting and identifying criminal activity which may in turn help with the crime rate.

My Proposed Example Of A Platform-Based Business

In my specific situation, I would create a digital platform that offers the ability to sell wellness equipment, ingredients, and tools at wholesale prices to existing small businesses.

It would be a niche-based platform that would attract those working in the wellness/longevity field, including both buyers and sellers.

The small business would get all they need to get started producing and marketing their product and the platform would be a showcase for other larger businesses.

This allows them to share their products and services with other smaller businesses and freelancers at wholesale prices.

There would not only be a transfer of products but also services such as consultations and advice for those starting out in the platform’s blog section.

In turn, the platform would take a small fee from each transaction made as well as offer a seller guarantee to ensure delivery and quality.

The platform would also collect a small fee from sellers to advertise their products and services.

It’s a win-win situation.

What Is Your Favorite Platform?

If You Could Create A Platform, What Would It Be?

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About The Author

Noor is a second-year business student at Tredu. She is also studying for a Diploma in International Smart Industry at Tampere University. She is passionate about marketing and content creation.