Your brand is your biggest asset in the face of Platformization.
Vivaldi’s Platformization Potential Study is a forward-looking, comprehensive report that introduces the top S&P 500 companies such as Netflix, Pfizer, MGM Resorts, Nike, etc. with the most potential to capture exponential growth. We built a case library of successful and unsuccessful companies that sought to become platform businesses, and after extensive research, we concluded that a number of key factors determine the potential for a traditional pipeline business to transform into a platform business.
We divided our analysis into two lenses: (1) the brand relationship between a company and its stakeholders and (2) how the company performs across five factors, including: The “Customer Centricity PLUS” Mindset, Value through data and analytics, Social Currency, Industry Position and Ecosystem Potential, and Agile Experimentation with New Technologies. The relationship brands have with stakeholders is critically important, and such a strong determinant of platformization, that it deserved its own category. Below find a spotlight on how we define the brand relationship lens:
The extent to which the brand establishes a relationship with consumers and the nature of the relationship with other participants in the ecosystem is the first lens through which to understand the platformization potential. –
LENS 01: The Brand Relationship
Your brand is what consumers remember about you. It is a short-cut for consumers to understand what a business stands for, the value proposition delivered, and the promises made. It is the feelings, emotions, attributes, and experiences that consumers hold in memory about a company, product, or service.
Brand governs the relationship consumers have with a company. At Vivaldi, this governance is defined in the Brand Identity System. The Brand Identity System defines the timeless and enduring elements of the brand strategy and how it translates into a brand-customer relationship.
Our research shows that the type of brand relationship that a company has with consumers strongly determines the potential for building a platform business.
For example, Amazon stands for convenience and this is the relationship most consumers have with the brand. Amazon scores high on brand relationship; it addresses consumers’ important needs and wants, and consumers interact with Amazon frequently. Nearly half of all product searches online in the U.S. start with Amazon. Therefore, Amazon has much higher potential to further develop its platform business than FedEx which consumers perceive as a logistics company.
How broadly or narrowly a brand is positioned, to what extent the brand establishes a relationship with consumers, and the nature of the relationship with other participants in value creation determines the platformization potential. This is cost-of-entry.
Explore the full study here for action-oriented strategies that can help businesses build better and stronger brands for today’s consumers.