"Platform businesses are taking over every industry and are already a part of our everyday lives whether we realize it or not," global consultancy Deloitte explains. "The platform business model does not own the means of production, but rather creates and facilitates the means of connection." This statement encapsulates the core of Shopify's strategy, as it focuses on empowering users to build their own online storefronts instead of creating products directly.
"When done right, platform businesses can grow far larger and faster than the competition. That's because the company itself doesn't need to do all the building. The users themselves are, in a way, a giant workforce that contributes as a form of engagement." This highlights how Shopify leverages user interaction and creative contributions in a collaborative environment, enhancing growth potential.
"Consider a company like Meta Platforms, which owns some of the largest social networks in the world, including Facebook, WhatsApp, and Instagram. What does a user experience when using these networks? Mainly other users, and the content that they create." This insight illustrates the advantage of a platform model and foreshadows how Shopify operates similarly by facilitating user-generated online sales.
"The e-commerce company offers long-term upside for patient investors. The valuation might surprise you." This hints at the potential financial benefits of investing in Shopify for those willing to take a long-term view of the e-commerce sector's evolution.
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