Almost every retailer looks to Google to refer customers, and it's rare
to find a manufacturer whose products aren't sold on Amazon. But these
and other big platforms can capture a disproportionate share of the
value a company creates: Buy an app on iTunes, and Apple takes 30%. The
author presents four strategies to help businesses reduce their
dependence on powerful platforms. Exploit the platform's need to be
comprehensive. American Airlines' strong coverage of key routes made its
presence on the travel website Kayak indispensable to Kayak's value
proposition. As a result, AA negotiated a better deal. Identify and
discredit discrimination. Public complaints that eBay was giving search
prominence to suppliers who advertised on the site forced a reversal of
the policy. Create an alternative platform. When MovieTickets was on the
verge of dominating phone and online ticketing, Regal Entertainment and
two other large theater chains formed Fandango. Deal more directly.
People ordering takeout through online platforms like Foodler and
GrubHub have often already chosen their restaurant. Restaurants that
deal directly can exit the platform.