What is Platform and Product Strategy?
Platform and product strategy are two critical components of a successful business. While they may seem similar, they actually serve different purposes and require different approaches.
A platform strategy is focused on building a foundation that can support a range of products or services. Platforms are often designed to be modular, with components that can be customized or combined to meet specific needs. The goal of a platform strategy is to create a foundation that is flexible and scalable, so that new products or services can be quickly developed and launched. Examples of platform-based businesses include Amazon, Apple, and Google, all of which have built massive platforms that support a range of products and services.
On the other hand, a product strategy is focused on developing and marketing a specific product or set of products. Product strategies are typically more focused and require a deep understanding of customer needs and preferences. The goal of a product strategy is to create a product that solves a specific problem or meets a specific need, and then to market that product effectively to potential customers. Examples of product-based businesses include Tesla, Apple’s iPhone, and Starbucks’ coffee products. While both platform and product strategies are important for a successful business, they require different approaches and skill sets. Platform strategies require a deep understanding of technology and systems thinking, as well as the ability to develop and maintain complex software platforms. Product strategies, on the other hand, require a deep understanding of customer needs and preferences, as well as the ability to design and market compelling products that meet those needs.