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You are starting a medium-size company that will be based in Leicester. Your business partners are Xavier and Zoe. Your company's name is Advanced Services
You are starting a medium-size company that will be based in Leicester. Your business partners are Xavier and Zoe. Your company's name is Advanced Services (A for short). A will offer services that match producers of type H with producers of type K. At the moment. no company is offering the service in the East-Midlands. and being located in the region is a requirement any firm offering the service has to meet. A will likely face only one competitor. The competitor is Derby Services (D for short). a new rm created by recent graduates that plan to offer the same matching services A will offer. D has already announced the date when they will start operations. that they will be based in Derby. and that they will cover all the East- Midlands as well. As part of your plan. you are proposing A to be a digital service provider instead of offering services in the 'traditional way'. that is. in brick and mortar offices where local clients come together. Being a digital only service provider is also a strategy D will implement for sure. Finally. to create a digital company. Zoe. Xavier and you will need to sell a proprietary software you own to nance the creation of your new digital platform company. Zoe. Xavier and you have already agreed to sell the software. but you still need to agree on how to sell it. and decide what type of company you should create. After studying economics at DMU. you are convinced the design of your rm should be based on insights from the economics of two-sided platforms. and digital economics. Your rst goal is to convince your partners that starting the rm as a two-sided digital platform is a good strategy. 1. Use the economic intuition you have developed and the theoretical concepts and results we have learnt about two- sided platforms and the digital economy to argue that the strategy you should pursue is to create the rm as a digital two-sided platform
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