“Platform” and “ecosystem” are two commonly used business buzzwords describing business models that investors and board members around the world seek to emulate. These types of businesses benefit from higher price-to-earnings on account of their superior performance compared to so-called linear business models. Ultimately, it should also be noted that these are not new business models and that, in most cases, evolve from linear business models to platforms to ecosystems getting to a position of higher performance that is ultimately recognised a valuation premium by the market.
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