Essay about Facebook : A Platform For The Service Suppliers
(Questions Answered: 1, 2, 6, 7, and 8)
Facebook, in my opinion, is a multisided platform for the following reasons:
1) It experiences multisided network effects – the more users there are, the more valuable the platform becomes as a whole. This is especially true from a multisided perspective, because the more users there are the more valuable the platform is for the service suppliers / advertisers. This exponential growth of value based on user base is a prime example of a platform and when that value stretches across at least 2 stakeholders from each side of the platform, then we can be sure that it is a multisided platform.
2) Depends (or at least has depended) on complementors like Zynga to bring unforeseen services to its users. Facebook is a great platform because it has a huge user base today, but to achieve that it (or complementers) needed to create content that lured in users. Since Facebook was a pioneer in its industry (even though previous social media companies existed) the uncertainty of use meant that it needed to allow others to figure out what its users want.
3) Facebook also encourages a triangular platform strategy with feedback from both users and service providers. Instead of being a “dumb pipeline” which would be a linear transformation of services, Facebook allows for its service providers to reach out to its users. A good example of this would be when Zynga was able to post on News Feeds. Even though Facebook…