Platform Business | Report

Running head: PLATFORM BUSINESS
PLATFORM BUSINESS
Zaidoon Barham
Manchester Business School

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PLATFORM BUSINESS
Table of Contents
Introduction......................................................................................................................................2
Background of the business.............................................................................................................2
Marketing aspects............................................................................................................................3
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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PLATFORM BUSINESS
Introduction
Platform business has been the primary business segment that is gaining acceptance in
today's society. The main reason for higher acceptance of platform business is that the audience
base that it affects have been significant. Therefore, it helps in improving the business process.
The platform business that is selected for the completion of this essay is the online education
business. According to the current platform business trend, the online education platform is
expected to be trending and growing drastically, and hence this will be benefitting the entire
working process (Allen and Seaman 2016).
This paper will analyse the different sides of the business, the pricing strategy, the
sources of direct and indirect network effects, the economies of scale, the role of data in the
success of the business, and the practical strategies that will benefit the process.
Background of the business
Online education is among the significant business prospects that have been trending
recently (Goodman, Melkers and Pallais 2019). Hence starting an online education business is
expected to be successful. Furthermore, the usage of blockchain in the operational process
could have a positive impact on the business model of the online education system. With the help
of the blockchain, the main difference that is spotted in the process is that proper recording of the
learning trajectory is understood (Jiang, Ballenger and Holt 2019). Therefore, it ensures that
there will be a proper assessment of the trusted certification regarding the learning process.
Sources are also made decentralised, and this acts as one of the significant benefits that should be
considered. These are the aspects that are expected to increase the efficiency of the business
workflow and hence will help in expanding the business.

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PLATFORM BUSINESS
Marketing aspects
Sides of the market
There are two sides to the platform market represented by the sellers and the buyers. Both
sides of the business create value in the transactional process. With an acceleration in the
transaction process, the cost price that is incurred in the video manufacturing process reduces
(Goodman, Melkers and Pallais 2019). In the case of the online education business, the students
act as the buyer and the revenue generator. The teaching organisation acts as the seller side of the
market. The profit is earned via the platform of the two-sided business has been much higher
than the traditional one-sided business (Bagheri and Movahed 2016). The online education
business is focusing on the intermediary relationship among the students and the organising
committee. This section also ensures the fact that the relationship establishment is directly
related to revenue generation. In case there is any kind of change in the operational process of
the relationship of the buyer and seller (teaching organisation being the seller and the students
being the seller in this case) there is a direct change in the revenue generation (Natale and
Libertella 2016).
What is the business model
Subscription business model can be used by the proposed online education system. This
model ensures that the customers keep on paying a recurring fee at a regular interval for keeping
access to the contents that are provided. In this business, there is no selling of services; there is a
subscription fee for the services that are provided (Kumar et al 2019).