Platform Paradox: How Digital Businesses Succeed in an Ever-Changing Global Marketplace

Digital platforms are changing the rules of competition in the global economy, with successful platforms now reaching billion-dollar market valuations in an average of four years. However, most platforms have triumphed in only some parts of the world, and few are truly global. In The Platform Paradox: How Digital Businesses Succeed in an Ever-Changing Global Marketplace, Wharton professor Mauro F. Guillén highlights the need for a successful global strategy, including digitization, local advantages, and transformation into digital platforms. Guillén offers an integrated framework for platforms to identify and implement a digital platform strategy on a global scale.

Format: Paperback / softback
Length: 104 pages
Publication date: 11 May 2021
Publisher: Wharton Digital Press

The impact of digital platforms on the global economy is profound, reshaping the rules of competition and transforming the trajectory of success for businesses. Traditionally, it took Fortune 500 companies an average of 20 years to reach billion-dollar market valuations. However, successful platforms today achieve this milestone in just four years.

In his book "The Platform Paradox: How Digital Businesses Succeed in an Ever-Changing Global Marketplace," Wharton professor Mauro F. Guillén delves into a significant paradox that emerges in this new landscape. While many platforms are considered successful, they have achieved dominance in only specific regions, rather than across the globe. In his extensive research spanning over three decades, Guillén has observed that multinational firms often fail to grasp the essential elements necessary for global success, encompassing culture, institutions, local competitive dynamics, and the strategic sequencing of market entries.

The failure of multibillion-dollar companies like Amazon in certain markets has prompted Guillén to investigate the factors that contribute to a successful global strategy. In "The Platform Paradox," he explores how the COVID-19 pandemic has accelerated digitization, forcing companies like Airbnb to adapt and pivot. He also highlights how platforms like Tinder and Uber have capitalized on local advantages to rapidly expand in different countries. Traditional companies, such as Lego, have undergone a digital revolution, transforming themselves from struggling entities to become dominant players in their respective industries, akin to Apple's transformation from a bankrupt company to a global tech giant.

Guillén further examines the possibilities and limitations of global expansion, using examples such as Zoom and Skype to illustrate the challenges and opportunities that arise in a connected world. In "The Platform Paradox," Guillén presents an integrated framework for digital platforms to identify and execute a digital platform strategy on a truly global scale. He offers valuable insights and practical strategies for platforms to navigate the complexities of a diverse and interconnected global marketplace, enabling them to thrive and succeed in the ever-evolving digital economy.

Weight: 154g
Dimension: 138 x 215 x 10 (mm)
ISBN-13: 9781613631164