Pattern description

A layer player is a specialized company limited to the provision of one value-adding step for different value chains. This step is typically offered within a variety of independent markets and industries. The company benefits from economies of scale and often produces more efficiently. Further, the established special expertise can result in a higher quality process.

Inventive problems

Application examples

US-based company TRUSTe, for instance, specialises in data privacy management services, operating a privacy seal programme to certify customers’ websites and increase their credence in the public eye. The company offers related services in the fields of reputation management, supplier rating and representation in data privacy disputes. The services of TRUSTe, a leading company in online data privacy, are used by many successful companies such as Facebook, Microsoft, Apple, IBM and eBay.

Another company that thrives on the Layer Player pattern is Luxembourg-based Dennemeyer. As a layer player, Dennemeyer focuses on providing complete coverage within the domain of intellectual property (IP) management and protection. The company’s services span legal advice, software solutions, consulting services and portfolio management. As such, major companies outsource these related services entirely to Dennemeyer. Although the services Dennemeyer offers appear to be quite diverse, they are strictly related to IP management and highly integrated. The company serves thousands of customers worldwide from all industries.

PayPal, a subsidiary of eBay, is an exceptionally successful layer player which focuses on online payment, offering various services in this domain. PayPal’s services are much employed in E-commerce and a great variety of industries. It is estimated that half of eBay’s revenues are generated through PayPal.

References

The Business Model Navigator: 55 Models That Will Revolutionise Your Business