3 obstacles to globalizing a digital platform

Publication Type

Journal Article

Publication Date

5-2022

Abstract

Many platform businesses rely heavily on network effects to drive their growth. But when it comes to international expansion, research suggests that network effects are insufficient to replicate the rapid market penetration these firms may be used to at home. Specifically, there are three critical areas that platform firms should consider when pursuing international growth: user acquisition strategy, organizational structure, and business environment. Through a series of quantitative and qualitative studies, the authors identified the common hurdles that digital platforms face in each of these three areas, as well as strategies that can be effective in addressing those challenges when attempting to enter a foreign market.

Keywords

Global strategy, Globalization, International growth, International expansion, Network effects, Digital platforms, Platform business

Discipline

Entrepreneurial and Small Business Operations | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Harvard Business Review

ISSN

0017-8012

Publisher

Harvard Business Review

External URL

https://hbr.org/2022/05/3-obstacles-to-globalizing-a-digital-platform

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