Introduction
Digital platforms and businesses present common ideas for start-ups in today’s society. Compared with traditional forms of businesses, digital platforms combine such advantages as rapid development in the global market and access to a broader audience. However, the seemingly simple global expansion of digital platforms, in reality, requires significant efforts and careful supervision. The article by Chen et al. (2022) explores the common obstacles digital platforms face in the process of expanding to other global markets. The authors define three important aspects that global platforms should consider before expanding to other markets: user acquisition strategies, organizational structure changes, and business environment differences.
Discussion
Firstly, concerning business theory, the article dispels common opinions about prioritizing technological excellence in globalizing a digital platform. Thus, the article emphasizes the adverse effects digital platforms can experience from using thoughtless expansion strategies by giving examples of famous companies, such as Uber and Airbnb (Chen et al., 2022). In addition, the article’s structure in explaining the process or story of the platform’s expansion favors an easier perception of information by the reader.
Furthermore, the article uses substantial data from experiences with large digital platforms, demonstrating the obstacles described by the authors. Moreover, the explanation of each obstacle features several examples, exploring both successful and unsuccessful measures to overcome the obstacles. Lastly, while there are no alternative theories about the expansion of digital platforms, the article can be used as a foundation for building a successful strategy for digital business development.
Conclusion
In conclusion, this essay explored the methods the article used to improve readers’ understanding of the main story. The essay identified that the authors used a simple and effective structure to convey their perception of possible obstacles digital platforms can encounter in global expansion. The essay also defined that the inclusion of several illustrative examples in the article makes it an important theoretical basis for developing further digital platform expansion strategies.
Reference
Chen, L., Li, S., Shaheer, N., & Stallkamp, M. (2022). 3 obstacles to globalizing a digital platform. Harvard Business Review. Web.