Topic 7 Flashcards
What is a digital platform?
A tech-enabled business model that connects producers and consumers through shared infrastructure and data.
Give an example of a commercial platform.
Amazon
What is a platform business model built on?
Digital infrastructure, user interactions, and data.
How does a platform differ from a traditional business model?
It facilitates interactions between users instead of delivering goods linearly from producer to consumer.
What are the Five P’s of platform strategy?
Proposition, personalisation, price, protection, partners
What does ‘Proposition’ mean in platform strategy?
The value offered to users
What is ‘Personalisation’ in platform strategy?
Customised user experiences based on data and AI.
How do platforms create value?
Through data
What is a network effect?
When each new user adds value to the platform for others.
What are same-side network effects?
More users attract even more users on the same side (e.g.
What are cross-side network effects?
More users on one side attract more on the other
How do platforms build trust?
Through secure systems, verification, reviews, and transparent rules.
Name a platform that uses AI for recommendations.
Netflix or Amazon.
What is the ‘chicken-and-egg’ problem in platform development?
You need both users and producers to attract the other.
How can platforms overcome the chicken-and-egg problem?
By subsidising early users, Concentrate on niche markets first, Envelop from existing user base,
Stage platform features over time
What are microtasks in gig platforms?
Small, low-skill jobs like tagging images or data entry
What are macrotasks?
Skilled freelance jobs like writing or programming.
What are the benefits of gig work?
Flexibility, job access, supplemental income, scalable workforce.
List three criticisms of gig work.
Low pay, lack of benefits, and job insecurity.
What legal case confirmed Uber drivers as ‘workers’ in the UK?
The 2021 UK Supreme Court ruling on Uber.
What is algorithmic management?
When platforms use automated systems to monitor
What is the pacing problem in regulation?
Technology evolves faster than regulatory systems can adapt.
Why is jurisdiction a challenge in platform regulation?
Global platforms operate across countries with different legal rules.
What is a key risk of large platform dominance?
They may exploit user data or eliminate competition.
