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The value proposition
usually creates value in
three main areas: First,
attracting user groups
(i.e. Customer Segments);
Second, matchmaking
between Customer Seg-
ments; Third, reducing costs
by channeling transactions
through the platform.
KP KA
The key resource required
for this business model
pattern is the platform.
The three Key Activities are
usually platform manage-
ment, service provisioning,
and platform promotion. KR
C$
The main costs incurred
under this pattern relate to
maintaining and developing
the platform.
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Business models with a
multi-sided platform pattern
have a distinct structure. MULTI-SIDED PLATFORMS
They have two or more
customer segments, each
of which has its own Value
Proposition and associated
Revenue Stream. Moreover, 87
one Customer Segment can-
not exist without the others. PATTERNS
VP CR CS
CH
R$ Each Customer Segment
produces a diΩerent
revenue stream. One or
more segments may enjoy
free oΩers or reduced prices
subsidized by revenues from
other Customer Segments.
Choosing which segment
to subsidize can be a crucial
pricing decision that
determines the success
of a multi-sided platform
business model.
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