Competing with Network Effects

October 04, 2015

Read The Full Prompt

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.

Submitted (138)

BloomNation: Working Hard for your Peonies
Kathryn R
Last modified on October 1, 2015 at 4:45 pm
“To the love of my life – from your sexy husband Kevin” read the note accompanying a gorgeous bouquet of flowers delivered to my doorstep last Christmas. There was only one problem: while my husband is objectively sexy, his name [...]
Priceline: The Travel Behemoth
AP
Last modified on October 4, 2015 at 3:34 pm
The story of how Priceline became the most valuable travel company in the world and the 3rd largest player in all of Internet commerce.
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