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The Benefits Of Pipelines

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Pipelines are the most traditional way of operating businesses, and are often straightforward. The market is fairly one-sided, as producers and consumers tend to undertake specific, rigid roles. Cable television, launched in the mid-90s (Desjardins, 2017), emerged quickly as the direct pipeline for delivering content to home viewers. Various cable companies have managed to maintain competitive advantage primarily through the offering of sports content packages. Cable subscription grants not only access to local matches, but also to those from all around the world ranging from NBA to NFL. Cable TV is advantageous as it is not restricted by regional limitations that may be imposed on broadcasting services online (Thompson, 2015). For …show more content…

With the rise of information systems and the internet, new opportunities have opened up for businesses, contributing significantly to the rise of platforms. The vigorous development of platform businesses has become a new pillar of contemporary global economy, as they occupy half of today’s top ten groups through market capitalisation (Woelderen & Pan, 2017). This is often done through using interactions and information to maximise and transform engagement into key value growth drivers. For instance, Alibaba Group, which dominates China’s online retailing market with the customer-to-customer platform Taobao, has seen a 56% increase in annual profit due to the rapid growth of mobile users (La Monica, 2017). According to Smith (2017), Taobao owns 529 million mobile monthly active users and 61.7% of transactions are made on mobile. Grasping the opportunity brought by extensive use of mobile application, Taobao satisfied the growing social demand for shopping convenience. This illustrates platforms’ flexibility and ability to better meet the developing needs for expanding ecosystems and to survive in demand-side economies. Alibaba Group (2017) has stated that Taobao aims to target the younger population as a lifestyle destination platform for both shopping and sharing product knowledge, as information acts as key value generators and assets for platforms. Additionally, Taobao offers low costs for both sellers and customers

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