Competing with Network Effects
October 04, 2015
One consequence of the digital transformation of the economy is that many industries today are exhibiting network effects.
For this module please pick ONE company/organization and discuss how networks effects may affect its value creation, value capture and/or operating model and/or how it can take advantage of network effects to grow its business.
Issues you may want to address (feel free to consider other related issues not listed below):
– How to scale up businesses that exhibit Direct Network Effects?
– How to scale up businesses that exhibit Indirect Network Effects?
– How should incumbent firms compete when their industries become susceptible to network effects?
– How can an entrant take over market leadership when competing with an incumbent in a networked industry?
– How can product-centric firms grow into platform-centric firms?
Create an approximately 500-750 word post to make your contribution. Please create appropriate tags for your post. Please also respond to and comment on three other posts per module. Feel free to use graphics, data, videos and links to other sites to corroborate your points.
Note: Since our third module is on crowd-based business models (business models that leverage collective intelligence from a large number of users), please do not pick crowd-based companies such as Kickstarter, Wikipedia, and Threadless for this OK blog post.