E-Commerce
Business, Customers
- B2C - (Nike)
- B2B - Typically on a wholesale level (Apple buying batteries from Samsung)
- C2C - Carousell
- C2B - Freelancer, shutterstock
Purchase for items or services online, but consume offline. Typically involves a brick-and-mortar store. Examples: Openrice, klook, uber
| Advantages | Disadvantages |
|---|---|
| High accessibility | Lack of physical experience |
| Convenience | Delivery delays |
| Cost efficiency | security concerns |
| Flexible business models | limited personal interaction |
Platform economy
Platforms are sensitive to the network effect. The more users on the platform, the more valuable it is. This allows the platform to have a significant advantage, even when innovative entrants have better products.
Increasing switching costs will encourage users to stay on the platform. This can be done through:
- Exclusivity: Products cannot be accessed in other providers.
- Sunk cost: Rewards from time and effort spent on platform
- Incompatibility: Switching costs are high (e.g. learning, migration, etc.)