Chapter 06 - Information Systems A Managers Guide to...

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6-1 Information Systems: A Manager’s Guide to Harnessing Technology
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6-2 This work is licensed under the Creative Commons Attribution-Noncommercial-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-sa/3.0/or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA
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6-3 Chapter 6 Understanding Network Effects
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6-4 Learning Objectives Define network effects Recognize products and services that are subject to network effects Understand the factors that add value to products and services subject to network effects Identify the three primary sources of value for network effects Recognize factors that contribute to the staying power and complementary benefits of a product or service subject to network effects
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6-5 Learning Objectives Understand how firms like Microsoft and Apple each benefit from strong network effects Recognize and distinguish between one-sided and two-sided markets Understand same-side and cross-side exchange benefits Understand how competition in markets where network effects are present differ from competition in traditional markets
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6-6 Learning Objectives Understand the reasons why it is so difficult for late-moving, incompatible rivals to compete in markets where a dominant, proprietary standard is present
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