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Unformatted text preview: for late‐moving, incompatible rivals to compete in markets
where a dominant, proprietary standard is present? What is technological leapfrogging and why
is it so difficult to accomplish?
3. Does it make sense to try to prevent monopolies in markets where network effects exist?
4. Are network effects good or bad for innovation? Explain.
5. What is the relationship between network effects and the bargaining power of participants in a
network effects “ecosystem”?
6. Cite examples where the best technology did not dominate a network effects‐driven market. 6.5 Competing When Network Effects Matter
L E A RN I N G OBJ E C T I V E S
1. Plot strategies for competing in markets where network effects are present, both from the
perspective of the incumbent firm and the new market entrant.
2. Give examples of how firms have leveraged these strategies to compete effectively. Why do yo u care whether netwo rks are o ne-sided, two -sided, o r so me so rt o f hybrid? Well, when
craf ting yo ur plan f o r market do minance, it’s critical...
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- Winter '14