MIS 301 Chapter Notes - Chapter 8: Lyft, Blue Ocean Strategy, Ipod Touch
8 Oct 2018
School
Department
Course
Professor
Document Summary
Understanding network effects: strategies for competing in a platform-centric, winner-take-all world. Network effects - also known as metcalfe"s law , or network externalities. Key takeaway product or service increases as its number of users expands. Network effects are among the most powerful strategic resources that can be created by technology-based innovation. Many category-dominating organizations/technologies, including microsoft, apple, nasdaq, ebay, facebook, and visa, owe their success to network effects. Network effects are also behind the establishment of most standards including blu-ray, wi-fi, bluetooth. List several products or services subject to network effects. Network effects are often associated with technology, but tech isn"t a prerequisite for the existence of network effects. Name a product, service, or phenomenon that is not related to information technology that still dominates due to network effects. The value derived from network effects comes from three sources: exchange, staying power, Stated that the value of a network equals its number of users squared.
