*6.2.1. SWOT analysis*

question is what we should do regarding our physical operations and our digital operations. Concerning the channel issue, when adding the electronic channel, we need to determine how to align it with the existing physical channel conflict and setting prices for different channels. In this first issue, if the old and new channels compete for the same group of customers, then this is likely to result in a conflict because of cannibalization effect. The old channel is expected to remain important and the likelihood of a channel conflict is high, then it is essential to address this conflict early on and to find ways to reconcile the interests of the two channels. This can be achieved for instance by creating one unified profit center. For example,

A platform strategy is an approach to entering a market that revolves around the task of allowing platform participants to benefit from the presence of others. In a traditional competitive strategy, it is generally assumed that customers can determine their willingness to pay for the product or the service independently. This assumption breaks down when studying platforms, as the participation of platform participants is interdependent with the choices of other users. This is why the formulation of a platform strategy requires somewhat distinct tools to help platform entrepreneurs and managers tackle the challenges of value creation and value capture [15]. Platforms present different strategic objectives than traditional frameworks for corporate strategy, which will often emphasize concepts like "lean" and "just-in-time" supply chain delivery. Platforms change what it means to lead organizations, forcing them to rethink their strategies, business models, leadership, organizational structures, and approaches to value creation and capture systems. Aiming to become a platform leader entails a vision that extends beyond one's own firm and aims to build and sustain in an ecosystem of partners,

Platforms can thus be effective vehicles to create new value [13]. The risk is that they might also undermine the ability of individual companies to capture their fair share of the value being created, especially if they do not own the platform [13]. By creating a far more visibility into options and facilitating the ability of participants to switch from one resource or provider to another, platforms can commoditize business and constrain the margins of participants. The greatest opportunities for value capture on platforms require an understanding of influence points that can create and sustain sources of advantage and make it feasible to capture a disproportionate share of the value created on the platform. Influence points tend to emerge whenever and wherever relationships begin to concentrate on platforms. By having privileged

where the platform leader has to be the equivalent of a captain [11].

in a digital-based grocery, we should

• apply the same product price

• charge lower prices • charge higher prices.

28 Marketing

**6. Platform strategy**

**6.1. Overview**

The first key step in establishing a platform marketing strategy is to conduct an internal and external environmental analysis. The external environment analysis will provide the insight on the existing opportunity and threat. The opportunities are promising factors or trends in the external environment that the firm can exploit for its own advantage. The threats are unfavorable external factors or trends that may present challenges to performance. The goal is to establish a match between the firm's strength to attractive opportunities in the environment, while eliminating or overcoming the weaknesses and minimizing the threats. The internal analysis will provide an insight on the organization strength and weaknesses. Strength includes internal capabilities, resource, and positive situational factors that may help the firm to survive. Weaknesses include internal limitations and negative situational factors that may interfere with the company's performance.
