Why Platform Companies (Facebook, Amazon, Airbnb and Uber) Are the Opposite of Traditional Companies, Why They Become So Enormous, and How They Can Be Effectively Regulated: Marshall Van Alstyne (repost) (#79)
3 Takeaways
00:00
Platform Companies Are Different From Traditional Firms
In traditional firm, take dell or cocoa coalik. The firm takes responsibility for all the value add through the portuans of the supply check. You can't scale network effects inside the firm as easily as outside the firm. E simple reason is there are more people and resources outside the firm so you have to scale outside. Third parties create a lot of e value. If you take the ratio of market capitalization to employees for platform company relative to additional company, that ratio is about an order of magnitude higher.
Transcript
Play full episode
