RISKS AND OPPORTUNITIES OF DIGITAL PLATFORMS FOR SCALING BUSINESS MODELS

Digital platforms are constantly changing and revolutionizing the business landscape in numerous aspects. The economic characteristics of digital platforms are the systematic capture and analysis of data and as a consequence the network effect. Digital platforms are flexible concepts which are constantly developing and adapting to the dynamics of markets with exponential growth. Compared to companies who have their roots in the old economy, those digital platforms can be regarded in two aspects. On the one hand, it can be seen as a risk, where the digital platforms are taking over market shares and generate monopolistic conditions. Furthermore, they are more often still perceived as a complete disruption of the traditional way of business. On the other hand, it can be seen as an opportunity to scale their existing business or even generate new business models. The challenges for companies implementing a digital platform as a business case are investigated upon highlighting on the opportunities and risks that accompany corporations in the conversion. In a desk research the roles of digital platforms and the market entry strategies build the theoretical framework. The paper elaborates the most significant risks and opportunities maintaining digital platforms. The research results are part of a comprehensive research project on business management and digital platforms developed as part of doctoral research at the Bucharest University of Economic Studies.