St. Martin's Press
May 31, 2016
What do Google, Facebook, Snapchat, Tinder, Alabama, and Uber have in common, beside soaring market share? They’re all platforms – a new business model that is quietly taken over our global economy.
Platform businesses generate value by using technology to facilitate exchanges between groups. So rather than making things, platforms simply connect people. These modern monopolies are creating vast fortunes for their founders while dominating our digital lives.
The Internet today is awash with platforms. Apple and Google, both platform businesses, are the world’s most valuable companies, while Facebook is responsible for nearly 25 percent of total Internet traffic. Since more than half of today’s billion-dollar “unicorn” startups are platforms, the next generation of Fortune 500 companies will be mostly platform businesses. And platforms are even more prevalent elsewhere. In China, Alibaba controls as much as 80 percent of the ecommerce market while Tencent’s WeChat platform has become the go-to source for almost everything else.
These platform giants are driving the most profound economic shift since the Industrial Revolution. Whether you’re building a platform business or not, you’ll soon be competing with one. Yet few people truly grasp the radical structural shifts of the last ten years. In Modern Monopolies, Alex Moazed and Nicholas L. Johnson tell the definitive story of what has changed, what it means for business today, and how managers, entrepreneurs, and business owners can adapt and thrive in this new era.
Alex Noazed is CEO and President of Applico, the company he founded in 2009 while a junior in college and financed initially with his own personal credit cards. He appears frequently on Bloomberg, CNN, CNBC, and FOX, and is been featured in The Wall Street Journal, The New York Times, and Entrepreneur. He also writes regularly for Huffington Post, Inc. Magazine, and TechCrunch. He is a graduate of Babson College.
Nicholas L. Johnson is Head of Platform at Applico, where he works with clients on building and scaling cutting-edge platforms. Prior to joining Applico, he spent several years as an editor at the Institute for New Economic Thinking where he worked closely with the Institute’s leadership, including six Nobel prize-winning economists. He is a graduate of Pomona College.