Conventional wisdom says that digital platform businesses should scale quickly, but that could be a mistake in some markets. This article explains why rapid scaling may not be the best strategy for everyone. In some cases, a more careful, incremental approach to scaling is more beneficial. Regulatory complexity and risk are cited as the most significant factors in platform scaling decisions. Furthermore, these factors are likely to become increasingly important as efforts to regulate tech companies gain momentum and as more companies in a greater variety of sectors seek to capture the benefits of platforms. This article cites multiple global examples that may help you determine when a fast or slow scaling strategy is most appropriate. For platform innovation, design, and optimization questions for your organization, please contact us.
