Final answer:
The product platform in business is a foundational component that supports the development of various derivative products based on a common set of design elements and technology. This approach helps businesses focus on core competencies, leading to greater efficiency and market success.
Step-by-step explanation:
The product platform is a core component in the product component model and serves as a foundation upon which a business can develop multiple products, thereby streamlining the production process and reducing costs. It is the set of common elements, especially in design architecture and shared technology, which forms the base for a series of derivative products. By focusing on their core competency, businesses leverage their product platform to create variations of a product without the need to start from scratch each time, leading to greater efficiency and the potential for market success.
In essence, a successful product platform allows for the development of new products with reduced research and development (R&D) time and costs, as well as allows businesses to regulate platforms for product safety more effectively. This approach aligns with the concept that businesses which focus on a narrow range of products, or their core competencies, often perform better than those that try to cover a wide range of products. The variation within a product platform can accommodate different customer needs or adapt to various market changes without abandoning the common foundational elements.