A platform model is a business model that’s been crafted to create value via a platform. The model functions by facilitating various kinds of exchanges between two or more groups that are dependent on one another. Consumers and producers are key examples of such groups. Businesses and organizations that rely on this model focus primarily on creating thriving communities. These communities proceed to have network effects which then allow users to interact which, in turn, leads to value generation.
Benefits Of A Platform Model
A platform model has a variety of inherent benefits and this is why they’ve become increasingly common over the past couple of years.
One of the biggest benefits of the platform model is the fact that, after a certain point, it becomes self-sustaining. There’s no doubt that a new platform in its infancy requires a fair bit of time and effort to be made on it before it starts to give results. After reaching this point, though, a high-end platform is capable of sustaining itself thanks to network effects that continue to attract people and service providers who are then connected with one another. This, in turn, allows a business to spend far less money on attracting new customers and can instead focus on other productive means of growing even further.
Another major strength of the platform model is its ability to scale incredibly well. In a platform model, a business doesn’t have to create or own the resource or product that’s generating value. No matter what kind of products are being exchanged via the platform, the business running it is solely responsible for the platform itself so their growth isn’t reliant on things like resources. Due to this, businesses operating on a platform model are able to scale extremely well without the constraints that a traditional business would have to face when expanding and scaling.
Alongside everything else, the efficiency offered by a platform model is unparalleled in most cases. By providing a single centralized location through which different groups are able to communicate with one another and go about tasks like selling or buying products, a platform is able to save time for both groups. A buyer is easily able to find anything they need on the platform whereas the seller has a streamlined and straightforward way to find potential customers who’d be interested in what they’re offering.
Amazon is perhaps the most significant success case of the platform model. This is an entity that sells millions upon millions of products every single month to people around the globe but they don’t own the majority of what they sell. Instead, they simply provide sellers a platform through which they can easily connect with buyers and offer them their products. The platform model has enabled Amazon to grow and scale into the mammoth it currently is.
The Relocation Industry & How It Could Benefit From The Platform Model
The relocation industry, for those who are a bit unfamiliar, revolves around businesses that aim to simplify the process of moving with their clients. Global relocation is on the rise and is likely going to continue to increase in the years to come as people travel around the world in search of work and for other reasons. The relocation industry is a multibillion-dollar industry consisting of logistics providers, relocation coordinators, and several other kinds of companies, all of which want to make the process of moving as easy as possible for their clientele.
As it stands right now, the relocation industry suffers from a variety of different issues that hold it back from being truly prosperous. In spite of the constantly increasing demand for this industry across the globe, its progress has been hindered by a variety of different factors.
Current Issues in the Relocation Industry
Going further into the specifics, perhaps one of the most significant issues is the fact that there’s a severe lack of concrete information to assist potential clients interested in hiring businesses from the relocation industry. Anyone who’d like to relocate usually has to browse through a variety of vague pages that often provide ambiguous information that makes it hard to figure out what the process will be like, what it’ll cost, and other similar things.
Another issue in the relocation industry is the fact that the relocation industry can often have severe communication breakdowns. A client who’s hired a company from the relocation industry might not be able to reach out to a representative during a critical time and communication breakdowns like these have played a major role in hampering the process of this industry over the years.
How a Platform Model Remedies the Aforementioned Issues
The platform model is one that can benefit businesses in all industries but it can have an absolutely huge impact on the relocation industry. The key reason for this is the fact that the platform model consists of everything necessary to remedy the issues currently faced in the relocation industry.
Communication, for instance, is something that’s always available via a platform model. Any worthwhile platform provides its users with the ability to seamlessly communicate with one another. By doing so, the platform model can rid the relocation industry of one of its most significant flaws.
Alongside this, a platform model also promotes clarity and transparency so each and every business would have to provide clear and precise details regarding their costs and operations to potential clients thereby increasing their confidence in the industry as a whole.
How Moovaz Can Help
At Moovaz, we’re able to connect people with millions upon millions of others who are on the lookout for relocation services and have firsthand experience with the industry. If you operate a business in the relocation industry, we’d like you to partner with us. By providing you with a reliable platform through which you can showcase your service, we can aid your business in generating value and enable it to scale and grow without any hindrances.
