M B A 8610 Lecture Notes - Lecture 4: Walgreens, Digital Goods, Network Effect
9 Feb 2017
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Walgreens: cluster to each other, 2 pharmacies close to each other they get more traffic, same thuing with subways. Qt: losses money on gas (cid:271)ut (cid:373)ake (cid:373)o(cid:374)ey o(cid:374) thi(cid:374)gs that (cid:862)kill(cid:863) you. When run a startup: what kills you is the account receivable. Initial costs high vs high: distribution higs vs low, growth constraint can be low only based on bandwidth and storage, the difficulty with digital is at the beginning. Facebook started to suck when your grandparents joined: critical mass. Like facebook, you had to have an edu email. Therefore your pare(cid:374)ts a(cid:374)d gra(cid:374)dpare(cid:374)ts (cid:272)ould(cid:374)"t joi(cid:374) Using fb to authenticate other sites: long-tail effects. You need to seize control of a market place. Amazon has to have its platform right to be successful. Adobe: the most people that use their ocument the easier that is to use. It has lowered the cost for vendors and user: cross side effect. How do you entice people to buy into your platform.
