Sharing economy seems to be a raising trend related to more sustainable consumption and responsible use of resources. Business concepts that want to offer efficient ways of sharing might rely on a sufficiently big enough group of participants. This logic is something most people might know from digital platforms such as Facebook. Is this just one thing sharing economy and platform economy have in common or in what way are they related?
Firstly, this essay will give a definition of platform economy and sharing economy to create a link between those increasingly relevant concepts. Secondly, there will be a section about how to enhance platform business models in general. Thirdly, I will provide an overview about the different kinds of sharing economy approaches before lastly adding information about the use of sharing economy in retail and specific trends related to this.
Table of Contents
1. INTRODUCTION
2. DEFINITION OF PLATFORM ECONOMY AND SHARING ECONOMY
3. HOW TO ENHANCE BUSINESSES BASED ON PLATFORM ECONOMY
4. WHAT TYPES OF SHARING ECONOMY BUSINESS MODELS ARE THERE?
5. SHARING ECONOMY TRENDS IN RETAIL
6. CONCLUSION
Objective and Thematic Focus
This essay explores the symbiotic relationship between the platform economy and the sharing economy, specifically analyzing how business models within these frameworks generate value through network effects and collaborative consumption. It investigates the shift from traditional pipeline business models to interconnected ecosystems and assesses how these concepts are currently disrupting the retail sector.
- Theoretical definitions of platform and sharing economies.
- Mechanisms for enhancing platform business model performance.
- Categorization of sharing economy business models.
- Disruptive trends within the retail industry, including shared storefronts and logistics.
Excerpt from the Book
Definition of Platform Economy and Sharing Economy
According to a Deloitte paper about the rise of platform economy, any kind of digital platform that uses the internet to create a network of individuals to facilitate digital interactions between them is considered a platform economy (Chan et al., 2018).
This perspective is understandable, since most platform business models and especially those that are growing rapidly are digital business models and benefit enormously from the huge potential of the internet. However, there have been much older examples of platform economy which didn’t need any digital tools to link customers with suppliers. Here to mention are malls, where the presence of customers and a high variety of shops creates an attractive marketplace for both sides or newspapers, where readers and advertisers are connected (Van Alstyne et al., 2016).
Independently from the digital or physical appearance of a platform, the triangular relationship between platform, suppliers and customers is what they have in common. In contrast to traditional business models where value is created through the creation and distribution of a product or service (Chan et al., 2018), platforms provide infrastructure to facilitate interactions between users and create value for them while appropriating value for the platform (Broekhuizen et al., 2021).
Summary of Chapters
INTRODUCTION: The chapter introduces the relevance of the sharing economy as a sustainable trend and outlines the essay's goal to link it with the broader platform economy.
DEFINITION OF PLATFORM ECONOMY AND SHARING ECONOMY: This section clarifies the conceptual foundations, noting that platforms facilitate value exchange between suppliers and customers regardless of their digital or physical nature.
HOW TO ENHANCE BUSINESSES BASED ON PLATFORM ECONOMY: The chapter focuses on shifting from supply-side economies of scale to demand-side economies of scale, highlighting the importance of network effects and data utilization.
WHAT TYPES OF SHARING ECONOMY BUSINESS MODELS ARE THERE?: This part examines resource-pooling models where the focus shifts from product ownership to access-based service consumption.
SHARING ECONOMY TRENDS IN RETAIL: The chapter discusses practical applications of the sharing economy, such as shared labor, physical storefronts, and collaborative logistics.
CONCLUSION: The conclusion summarizes that the internet acts as a primary catalyst for these models, reinforcing the efficiency of resource exchange in both digital and physical marketplaces.
Keywords
Platform economy, Sharing economy, Network effects, Business models, Retail, Sustainability, Digital transformation, Collaborative consumption, Ecosystem, Value creation, Demand-side economies of scale, Resource pooling, Logistics, Infrastructure, Innovation.
Frequently Asked Questions
What is the core focus of this publication?
The publication examines the intersection of the platform economy and the sharing economy, focusing on how these models facilitate resource sharing and value creation.
What are the primary thematic areas covered?
Key themes include definitions of modern business models, the optimization of network effects, the shift from ownership to access-based consumption, and specific disruptions in retail.
What is the central research objective?
The objective is to define these concepts, create a theoretical link between them, and explore how companies can leverage these business models for increased efficiency.
What methodology is employed in this study?
The work utilizes a literature-based theoretical analysis, drawing upon academic papers and industry reports to synthesize strategies for platform and sharing economy businesses.
What topics are discussed in the main body?
The main body covers the mechanics of platform growth, the shift toward demand-side economies of scale, different business model typologies, and emerging retail trends.
Which keywords define this work?
Essential keywords include platform economy, sharing economy, network effects, collaborative consumption, and retail innovation.
How does the author distinguish between platform and traditional business models?
The author notes that traditional models focus on the creation and distribution of products, whereas platforms provide the infrastructure to facilitate interaction between users and suppliers.
What are "return bars" in the context of retail?
Return bars are a sharing economy trend where companies with a physical presence allow customers to return products purchased from other retailers, thereby reducing industry logistics costs.
Why is "openness" considered a challenge for platforms?
Managing openness involves a trade-off between access and authority; while limiting openness might reduce network effects, too much openness can lead to quality losses and misbehavior on the platform.
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- Lars Bucher (Autor:in), 2021, Platform Economy and Sharing Economy. Concept and Application in Retail, München, GRIN Verlag, https://www.grin.com/document/1191420
