Innovating Platform Business Models

Digitalization, connected products and services, and shortening innovation cycles are widely discussed topics in management practice and theory and demand for new concepts. Platforms are such a concept and find successively entry into a growing number of companies. However, research did not yet address how business models for platforms can be innovated. Thus, we build on a multi-case study and analyze how three major companies, Amazon, Apple and Google innovated their business models. We found out, that each company still runs its original platform business model, which got innovated through the addition of new business models, when the platform’s scope got expanded. Strategically, this was done out of offensive, defensive and opportunistic reasons. Furthermore, each business model of a platform is interrelated with the core business model, being in a one-sided or mutually beneficial relationship to each other.