Digital Platforms II

Advantages and disadvantages of digital platforms.

In a previous post we introduced digital platforms, how they work and why they began to be used consistently. But these sites, like any other, have pros and cons to take into account when evaluating the best next step for your company.

On the one hand, these platforms achieve:

  • A successful ecosystem
  • They position companies in an already formed system
  • Payment and delivery logistics are built in
  • They expose all companies to the same dynamics of value created and competition

However, there are several disadvantages to consider within these platforms:
  • The differentiation that is necessary for each company’s own interests is limited
    • Reaching clients is the same for all companies
  • The strategies the companies use for such differentiation can be blocked or conditioned
  • The competition is almost fully bound by price
  • The value created goes to the platform.
  • The platform’s structure eliminates the particular identity of the company.
  • It can generate a dependency on the platform
    • By losing competitiveness
    • For product positioning
  • The company itself lacks detailed customer information for analysis within the platforms.

For these reasons, it seems important for us to evaluate the opportunities that best fit each company's sales and distribution of its products to customers. Do you have any experiences that align with these points? Would you like to share them with us?