Sometimes we wonder how competition is coming from a left-field, totally unexpected. That’s especially true with platform companies. They seem to be expanding into new areas without a clear strategy. For example, Tesla’s strategy focused on self-driving electric vehicles but then it entered into the home energy storage business with Tesla Power Wall and Tesla Solar Roof.
However, platform companies do have a strategy. First, they build a core business and capabilities focused on a specific industry. They learn faster than incumbents with the help of AI. And then, after having reached a critical mass, leverage these capabilities in new businesses. For example, a food delivery company Wolt expanded into the last-mile delivery of goods.
In other words, platform companies diversify their business by transcending industry boundaries.
Learn more and read our case study of Zoom from Ambition Magazine and learn how Zoom built a successful videoconferencing platform, leveraged AI, and then expanded into Telehealth.
How to diversify your business with platforms: lessons from Zoom and other companies