What does the platform (r)evolution describe?

Prepare for the CIMA Strategic Management (E3) Exam with comprehensive flashcards and multiple-choice questions. Each question offers hints and explanations to ensure you are ready for your test!

Multiple Choice

What does the platform (r)evolution describe?

Explanation:
The platform (r)evolution centers on how digital platforms are becoming easier to establish and cheaper to run across the globe. This shift is driven by cloud computing, scalable infrastructure, open APIs, modular architectures, and vibrant ecosystem dynamics that let many participants (developers, users, partners) join and benefit from the platform quickly. Because costs to scale and reach new users fall, platforms can grow globally with less upfront capital, creating network effects that amplify value for everyone involved. So, the idea is that platforms are enabled to launch and expand more cheaply and widely than before, which matches the option stating global platforms becoming easier to establish and cheaper to run. The other notions—harder to establish, cloud eliminating platforms, or licensing driving platforms—don’t fit this view.

The platform (r)evolution centers on how digital platforms are becoming easier to establish and cheaper to run across the globe. This shift is driven by cloud computing, scalable infrastructure, open APIs, modular architectures, and vibrant ecosystem dynamics that let many participants (developers, users, partners) join and benefit from the platform quickly. Because costs to scale and reach new users fall, platforms can grow globally with less upfront capital, creating network effects that amplify value for everyone involved.

So, the idea is that platforms are enabled to launch and expand more cheaply and widely than before, which matches the option stating global platforms becoming easier to establish and cheaper to run. The other notions—harder to establish, cloud eliminating platforms, or licensing driving platforms—don’t fit this view.

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