What is Two-Sided Market

A two-sided market or two-sided network is made up of two distinct user groups that provide each other with network benefits in which they interact through an intermediary or platform. A digital marketplace makes use of a two-sided market where the two distinct groups are the buyers and sellers. A digital marketplace is a type of e-commerce site where the sellers offer products or services to the buyers, and transactions are controlled and processed by marketplace operators. With the rapid development and adoption of the Internet and digital marketplace globally and also regionally, businesses in Brunei Darussalam are slowly incorporating digital marketplace. This chapter provides an overview of the current state of the digital marketplace in Brunei, and thus, case studies of local digital marketplaces are discussed. A qualitative approach, which consists of interviews with companies, is made for the study. The strengths and problems of employing digital marketplace for businesses and analysis using Michael Porter's five models is also covered in this chapter.