Product, Portfolio, or Platform: Differentiating Business Models

Businesses can be categorized into three models: product, portfolio, and platform. A product business revolves around a single offering, like Facebook. A portfolio business requires multiple businesses to sustain growth and profitability, such as Roman, which expanded from erectile dysfunction drugs to hair loss and skincare products. Match Group is another example of a portfolio business with dating apps like Tinder, Hinge, and OK Cupid. A platform business, like Stripe, builds on a core service by adding various complementary products. Determining whether a business is a product, portfolio, or platform model is crucial for strategic growth and expansion.