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
Citation
CHEN, Liang; LI, Sali; SHAHEER, Noman; and STALLKAMP, Max.
3 obstacles to globalizing a digital platform. (2022). Harvard Business Review.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7399
External URL
https://hbr.org/2022/05/3-obstacles-to-globalizing-a-digital-platform