Platform Revolution: How Networked Markets Are Transforming the Economy and How to Make Them Work for You: How Networked Markets Are Transforming the Economy―and How to Make Them Work for You

by Geoffrey G. Parker

Nike is not the only company taking the first steps in transforming its traditional pipeline business into a platform business. Under Armour, a rival of Nike in the sports and casual wear market, has been moving quickly to build its own fitness ecosystem. In November 2013, it purchased MapMyFitness, a leading workout and exercise tracking platform. Then, in February 2015, it followed up by buying two more fitness platforms—MyFitnessPal, which focuses on nutrition, and Endomondo, a “trainer in your pocket” that mainly serves consumers in Europe. The total purchase price for the three companies: a hefty $710 million. “What’s really astounding,” one analyst commented, “is that none of the companies acquired make actual devices. Instead, everything is about platform and data. And—more importantly—users.”