Platform distribution refers to digital business models that do not focus on the management of a value chain, but rather on the linkage of several market players and market levels.
Platform distribution has a clear focus on the end customer. Especially in multi-level sales, platform distribution questions the concept of joint value creation in order to transform integrated solutions into a viable (digital) business model. Platform models bring together supply (e.g. steel suppliers, service providers) and demand (e.g. steel customers, machine and plant manufacturers) in such a way that they can be easily integrated.
Thus, platform distribution is a dynamic ecosystem and is distinct from rigid pipeline distribution, in which individual players control the entire side of a value chain (e.g. traders who control supply by purchasing). Platform distribution is often accompanied by a Business Model Review. This involves an early market-based assessment of the disruption potential in the existing business and the development of strategic measures to strengthen the market position against (potential) competition in the long term.