Final answer:
The statement that platform businesses can grow faster than pipeline businesses is true. Platform business models focus on digital interactions between users and leveraging network effects, unlike traditional businesses which require heavy physical infrastructure investments.
Step-by-step explanation:
The correct statement about platform businesses is that they can grow faster than pipeline businesses. Platform businesses like those in the technology or service sectors largely leverage digital infrastructure and network effects. Unlike traditional pipeline businesses that need to invest heavily in physical infrastructure and linear supply chains, platforms can scale quickly by facilitating direct interactions between producers and consumers.
For instance, a platform business model enables companies to manage and utilize information effectively, creating value by connecting users and leveraging user contributions. Contrary to the assertion that platforms don't benefit from community feedback, platforms often thrive on such feedback to make iterative improvements to their services and to drive user engagement and growth.
Overall, while traditional businesses require significant investment in physical assets and complex supply chain management, platform businesses emphasize the power of networks and the flow of information to achieve quick scalability and adaptability.