Strategic recommendations for two-sided networkinternet platforms operating in the craft industry: A case study on a craft industry internet platformcomplemented by a market study
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Two-sided network internet platforms connecting businesses and customers, suchas Airbnb, Uber, and Ebay, are becoming increasingly attractive. The Swedish craftindustry is dominated by two such platforms, Servicefinder and Offerta. However,new players have begun entering the market, identifying an opportunity foralternative business models. The purpose of this thesis was to, through theevaluation of a strategic framework, produce recommendations that two-sidedplatform owners operating in the craft industry can utilize to create competitivebusiness models. Insights to the particularities of the internet platforms in the craftindustry was obtained through a case study, and complemented by a market studyinvestigating issues experienced by both the customers and craft businesses.Among the findings are that the majority of issues stems from sub-par ‘supportivebusiness functions’, which encompasses all business related activities aside fromperforming the actual craft. Assisting firms with a portion of these functions, the“level of process involvement”, is a direct way to address these issues and enhancethe value proposition towards both customers and businesses. Furthermore,platforms need to consider two additional key aspects when developing a strategy:the level of collaboration with businesses and scalability.The conclusions show that platforms should avoid becoming dependent oncustomized collaboration with the partner businesses and instead focus onconformity and standardization to promote growth and scaling. It is also arguedthat platforms should aspire to position themselves at either end of the processinvolvement aspect: create full-package solutions or simply sell leads. Finally, it isdemonstrated that the average transaction size of the queries facilitated on theplatform is a crucial factor to the overall strategy and value proposition.
Place, publisher, year, edition, pages
2016. , 70 p.
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-190194OAI: oai:DiVA.org:kth-190194DiVA: diva2:952055