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Create Multi-Sided Platforms to Balance Demand and Capacity

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DOI: 10.4236/ajibm.2019.97105    250 Downloads   508 Views
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ABSTRACT

Technology advances continue to create opportunities to streamline business models. GPS, IoT and Cloud computing enable application development that features greater capabilities. By developing Multi-sided platforms, firms can better balance demand and capacity among buyers, suppliers and partners. Nurturing an asset-light ecosystem enables more direct, efficient and real-time commerce. The following study illustrates a path for growth by an incumbent operator. Balancing user requests versus enterprise capacity while bringing on-stream capital expenditures was never easy. Customer’s dissatisfaction and profit setbacks often occur when consumption, production and fulfilment are out-of-balance until a stable equilibrium is determined. The quest to acquire customers and expand market share is prompting firms to innovate with a strategic digital platform to leverage new capabilities, efficiencies and insights. This paper offers a framework to improve business models that face hardships due to shifting customer preferences, popularity fads and mounting infrastructure investments.

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Fisher, C. (2019) Create Multi-Sided Platforms to Balance Demand and Capacity. American Journal of Industrial and Business Management, 9, 1596-1624. doi: 10.4236/ajibm.2019.97105.

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