Figayou pursues a platform strategy: A case study of digital platform entrepreneurship

What is it about?

Startups building the next generation of digital technologies have to make an important strategic decision to position their innovations: should they sell their technology as a product or a service, or package it as a platform? This decision will influence the startups’ strategies for value creation and value capture and, ultimately, their survival. Moreover, if the startup decides to pursue the platform model, how should it balance the building of its core technologies, designing incentives and rules, and capturing value? We explore the case of Figayou, a startup with unique mobile technologies, and the decisions its core team has to make to launch a digital platform and design a strategy to create a sustained competitive position. In this research case, we apply two complementary approaches to analyze Figayou’s business model and strategic position, one focused on internal competencies and another on the building of a platform and the creation of value.

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Why is it important?

This research helps digital technology startups position their innovation as a product, a service, or a platform. For a company choosing a platform strategy, it illustrates two complementary approaches to sustaining its competitive position, one focused on internal competencies and another on creating platform value.