Two-sided marketplaces are platforms that bring sellers and buyers together to establish and exchange value. It differs from traditional organizations in that authority is distributed upward and all employees follow a hierarchy of command. As per the case study, the fastest-growing internet start-ups made extensive use of platforms. These marketplaces sought to connect providers of rented assets, physical products, and services with customers in need. In terms of the rapid early growth of platforms such as Etsy, Airbnb and Uber were among the most potent two-sided platforms. In that order, they offered short-term rentals, handcrafted goods, and car rides (Teixeira, et al., 4). To make ends meet in 2007, Brian and Joe converted their apartment into lodging rooms, sleeping on air mattresses on the floor. Airbnb and uber platforms u significantly used digital advertising as a targeted technique to influence new individuals. A number of compensated digital media platforms, such as Google search adverts, YouTube video ads Facebook adverts and have numerous advantages that brand them appropriate for system start-ups than traditional forms of media publicising, such as local television commercials or print adverts, exclusive and complex. The invention of Esty made thousands of pf people register to the site making sales of commodities to the sellers (Teixeira, et al., 6)
Many businesses with two-sided platforms strive for cost leadership as their first competitive advantage. A company has a charge control advantage when offering a similar superior product or service like its competitors at a lower price. To implement this strategy, a company must find methods of producing goods at a lower price by improving manufacturing methods or exploiting resources more proficiently than competitors. Technology-based advantage; Rapid technological advancements have the potential to have a significant impact on the competitive landscape. Overall, the innovation advantage lessons are that progress can be a source of competitive business advantage for Airbnb and Uber and other companies, and that invention can be primarily focused on technology. The foremost key in gaining a competitive advantage from technology is to use it to drive commercial innovation rather than to exploit it solely for its particular sake. Finally, there is the issue of time-based advantage, in which delaying services to customers is a threat, and a competitor takes advantage by providing the services instead.
The common characteristics of these businesses in acquiring their first thousand customers are driven by the two-sided platform nature of these businesses. Some of the parallels are as follows: Improving the customer experience; The faster growth of these organizations can be attributed to their techniques for acquiring the first customers in conjunction with these possibilities. Because hotel rooms were in short supply, Airbnb was able to attract its first customers. Customers were drawn to Etsy because it was located in the heart of Brooklyn’s artisan flea market. Uber realized that changing the entire cab-riding experience could help it gain more customers. They were all reliant on word of mouth: companies relied on happy customers to spread the word. Initially, none of the three brands spent a lot of money on marketing, but the excellent services they provided helped them spread the word to customers. Customers who were satisfied with the services returned for more, which helped to spread the message through word of mouth, resulting in increased company or organization for the businesses.
Teixeira, Thales S, and Morgan Brown.2016. Airbnb, Etsy, Uber. Acquiring the first thousand customers. President and Fellows of Harvard College, 6(4). pp.1-17Order Now