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The following diagram
is a visualization of
popular and emerging
brands in China's
e-marketplace displayed
by their core offerings,
be it their services,
products, content,
or social community-directed
propositions.
Providers within
the e-market space
are active in
delivering value and
specific solution clusters,
ranging from online
booking services,
e-commerce platforms,
payment gateways,
crowdsourcing, and content
curation propositions.
By offering such
integrated solutions,
firms move up the
value chain, hence,
differentiating themselves
from their competitors.
What this means is that
hybrid value propositions
are more difficult to
imitate as the service
aspect is less visible,
leaving a sustainable,
competitive advantage,
and customizable and
integrated solutions.
As new multi-sided
business models unique
to user needs and goals emerge,
the ultimate measure is
whether a company succeeds
in combining assets to create
value to its target entity,
including itself, and thus
crack the value innovation code.
I will now provide an
example case study to
illustrate such a multi-sided
business model approach
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exemplifying the diversity
of value-creating products
services bundled propositions.
Here's a case study which
illustrates the scale
and speed in which
technology-centric
companies are expanding
their reach across
the e-market space.
Meet Pinduoduo, the largest
agriculturally focused
technology platform
with more than 586,000
agarian producers
serving an excess of 788
million active buyers today.
Its product gross
merchandise values stood at
US $1.43 billion in 2020 only
five years after its founding.
Pioneering new trends in
social and customer to
manufacturer commerce
has contributed
to an expanding view
on how e-commerce
can deliver value
across downstream
and mid-stream supply chains
and logistical infrastructures.
Its differentiation is
the social aspect where
users can easily share
what they have purchased
with their social network,
and enjoy lower prices.
If people in the
network also join
their virtual community
to buy the product,
merchants stand to benefit
because they gain both
in larger order volume as well
as more visibility
to the demand,
which in turn, they
can use to better
plan their production and
logistical processes.
The user experience
in this case study
is anchored around
browsing and interactions,
as opposed to deliberate
search space discovery.
The company presents users with
personalized content
to encourage them
to explore new
products for making
shopping fun, interactive,
and engaging.
Lotteries, flash sales, and
other gamification features
encourage users to
check in regularly
and to browse other
product categories.
Pinduoduo is known for its
interactivity and value
for many offers that
have been described as
the combination of
the best features of
Costco and Disney with
references to social commerce.
The analysis of Pinduoduo's
multi-sided business model
revealed important value
constructs, namely,
how an organization can
build relationships
with its users by
integrating e-commerce apps
within popular social
media platforms.
How this knowledge helps refine
the value proposition
to attract new users.
The data which it collects
for the purpose of expanding
user experience through
collaborative team purchasing,
intentionally supporting small
and medium size businesses
to find new target users
and thus reshaping
its value creation capabilities
to attract new markets.
