This is the talk Laure Claire Reillier gave on November 8 2017 at Pilot's Marketplaces Event in London. Laure Claire talks about how platforms operate, and presents a new framework, the Rocket Model, to help with identifying growth bottlenecks. She also talks about different priorities across the four main platform life stages: design, ignition, scaling and maturity.

1. P L A T F O R M S T R A T E G Y
How to design, ignite and scale your marketplace
Laure Claire Reillier
Lauchworks & Co
@Lreillier
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2. © LAUNCHWORKS VENTURES LTD.
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Who recognizes this place?

3. Platform:
A business creating significant value through the
acquisition, matching, and connection of two or
more customer groups to enable them to transact
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Marketplaces
Products, Services
eBay, Alibaba, airbnb, Upwork
Cards &
Payment platforms
Operating systems
& app stores
Credit cards, Payment services
Visa, Mastercard, PayPal
Operating systems, app stores
Apple AppStore,
Windows, Android
Social platforms
Network & messaging
platforms
Facebook, Instagram, LinkedIn
© LAUNCHWORKS & CON O V E M B E R 8 T H 2 0 1 7
Source
Platform
Strategy,
Routledge
2017

4. Value is increasingly concentrated in the upper
right hand side quadrant: Digital Platforms
E-commerce retailers
PhysicalDigital
Traditional
(LINEAR)
Platforms
(MULTI-SIDED)
Digital platforms
Retail store
Auction House
Business model
Channel
Car manufacturer
Local service provider
(plumber, restaurant)
Digital marketplacesSoftware-as-a-service
companies
Traditional dating
agency
Payment platforms
Digital Marketplaces
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Shopping mall
Farmers’ market
Digital
marketplaces
are
a
type
of
platforms
where
goods
&
services
are
exchanged
Operating Systems
& App stores
Social platforms
Source
Platform
Strategy,
Routledge
2017
© LAUNCHWORKS & CON O V E M B E R 8 T H 2 0 1 7

5. Since the Industrial Revolution traditional
businesses have followed a linear model
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(1985)
© LAUNCHWORKS & CON O V E M B E R 8 T H 2 0 1 7
Source
Platform
Strategy,
Routledge
2017

6. Marketplaces
are not linear
businesses
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7. Marketplaces’ new ‘rocket designs’ are
replacing the value chain of traditional firms
PRODUCERS USERS
STRATEGIC
ENABLERS
GOVERNANCE
TRUST
BRAND
KEY ENABLERS
IT
PAYMENTS
UX
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A critical mass of
producers…
…and users on both
sides
Participants who may
want to transact are
‘introduced’
Buy, meet, exchange,
contribute
Participants exchange
info so they can transact
Learn from data to
enhance experience
© LAUNCHWORKS & CON O V E M B E R 8 T H 2 0 1 7
Source
Platform
Strategy,
Routledge
2017

8. Different
priorities
across
lifestages
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9. Successful marketplace scaling requires
laser focus on key priorities
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Marketplace design
Customer/Transaction
Growth
Balanced & Relevant
Liquidity
Trust and Loyalty
Creating Product
Market Fit
Sparking Liquidity
Raising funds
Business Growth
Profitability
Platform Power
Users
Producers
2-Ignition 3-Scale-up 4-Defensive growth
Critical mass
A
C
B
1-Pre-launch
Source:
Launchworks
&
Co
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Source
Platform
Strategy,
Routledge
2017

10. Develop two
value
propositions
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11. Value proposition design is key since it needs to
address different marketplace stakeholders
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Airbnb Guests Hosts How does airbnb deliver?
Value proposition
Broken down by value
brought by each
participant
Hosts: access to a
large choice of
homes
Airbnb: efficient
search, trust & safety,
payment, insurance
Guests: reviews
Airbnb: listing
services, efficient
matching, payment
services, insurance
Sets governance for the ecosystem
Manages platform ecosystem by
efficiently attracting, matching &
connecting travellers with home
owners globally
Takes a commission on transactions
between guests and hosts
Vs.
Hilton Guests How does Hilton deliver?
Value proposition ‘Leading brands serving virtually any lodging
need anywhere’*
Identify prime locations, build/acquire
hotels, manage hospitality logistics, sell
rooms and invest in Hilton brands
*Source:
Hilton
Investor
Presentation,
2016
ATTRACT
Source
Platform
Strategy,
Routledge
2017
N O V E M B E R 8 T H 2 0 1 7

12. Ignition is about marketplace fit, sparking
liquidity and securing resources
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Marketplace design
Customer/Transaction
Growth
Balanced & Relevant
Liquidity
Trust and Loyalty
Creating Product
Market Fit
Sparking Liquidity
Raising funds
Business Growth
Profitability
Platform Power
Users
Producers
2-Ignition 3-Scale-up 4-Defensive growth
Critical mass
A
C
B
1-Pre-launch
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Source
Platform
Strategy,
Routledge
2017

13. Getting the cookie cutter right
Cancellation rate
> 35% vs. <3%
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credits
to
Blablacar
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14. Key scale-up priorities are usually threefold
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Marketplace design
Customer/Transaction
Growth
Balanced & Relevant
Liquidity
Trust and Loyalty
Creating Product
Market Fit
Sparking Liquidity
Raising funds
Business Growth
Profitability
Platform Power
Users
Producers
2-Ignition 3-Scale-up 4-Defensive growth
Critical mass
A
C
B
1-Pre-launch
N O V E M B E R 8 T H 2 0 1 7
Source
Platform
Strategy,
Routledge
2017

15. A robust trust framework is key to
enabling marketplace transactions
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16. May the Power of Platforms be
with you!
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www.platformstrategy.co
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LAUNCHWORKS
Advice from the platform experts
www.launchworks.co
Thank you
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