Platform strategy framework for internet-based service development: case of eBay

Service industry has grown to dominate a significant portion of the US economy. However, research focusing on service development has not grown at the same pace. This paper focuses on platform-based product development that is increasingly used by high-technology companies in their quest to manage the complexity associated with offering greater product variety. The authors extend platform thinking to the service sector and postulate that companies developing nonphysical or intangible services, such as internet-based services, might also benefit from adopting an effective platform strategy. A platform strategy framework for web-enabled services is introduced to aid management in designing and developing strategically sound platforms that leverage existing markets and core competencies.