What is a characteristic of a two-sided platform?

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A two-sided platform is defined by its ability to connect and facilitate interactions between two distinct user groups, enabling them to provide value to each other. This characteristic is crucial for creating network effects, where the value of the platform increases as more users from each side engage with it. For instance, a common example is a marketplace where buyers and sellers interact; each group benefits from the presence of the other, leading to increased opportunities for transactions and interactions.

In contrast to this, the other options lack the defining feature of a two-sided platform. Connecting only with suppliers does not embody a two-sided approach, as it ignores the necessary interaction with customers or buyers. Allowing only customer-to-customer transactions limits the platform to a single type of interaction and does not reflect the distinct user groups typically involved in two-sided platforms. Focusing solely on selling products also narrows the scope of engagement, as it does not consider the interactive nature of two user groups that contribute to the platform's ecosystem. Thus, the facilitation of interactions between two distinct user groups is what truly characterizes a two-sided platform.

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